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CIRCULAR  No.  32A 


Public  Service  Commission 

OF  MARYLAND 


Regulations  Prescribing  a  Uniform  System 
of  Accounts  for  Gas  Corporations 


ISSUED  BY  ORDER  OF  THE  COMMISSION 


June  12,  191 


BALTIMORE 
1911 


CIRCULAR  No.  32A 


Public  Service  Commission 


OF  MARYLAND 


Regulations  Prescribing  a  Uniform  System 
of  Accounts  for  Gas  Corporations 


ISSUED  BY  ORDER  OF  THE  COMMISSION 


June  12,  1911 


BALTIMORE 
1911 


of 


INDEX 

LIST  OF  ACCOUNTS. 

SCHEDULE  A:   BALANCE  SHEET  OR  INDICANT  ACCOUNTS. 

FIXED  CAPITAL. 

Page. 

1  Fixed  Capital,  June  30,  1911 M 

11  Organization   1° 

12  Royalties,  Franchises  and  Licenses H 

13  Manufacturing   Plant H 

131  Land    ]  1 

132  Buildings  and  Structures 12 

133  Holders  12 

134  Furnaces,  Boilers  and  Accessories 12 

135  Steam  Engines 13 

136  Gas    Engines I3 

137  Miscellaneous  Power  Plant  Equipment 13 

138  Benches  and  Retorts I4 

139  Water  Gas  Sets  and  Accessories 14 

140  Purification  Apparatus I4 

141  Accessory  Equipment  at  Works • I4 

15  Transmission  and  Distribution I4 

151  Land 14 

1 52  Trunk  Lines  and  Mains 15 

153  Street  Mains,  Extension  and  Improvements 15 

154  Gas   Services 1R 

155  Gas  Meters 1 fi 

1 56  Gas  Meter  Installation 16 

1 6  Municipal  Street  Lighting  Fixtures 17 

17  Gas  Engines  and  Appliances 17 

18  General  Office  and  Branches 1* 

181  Land   1* 

1 82  Buildings   and   Structures 18 

183  Furniture  and  Fixtures IS 

19  Other  Equipment T9 

191  Land   19 

192  Buildings   and   Structures 19 

193  Gas  Tools  and  Implements 20 

194  Laboratory  Equipment 20 

195  Storeroom    Equipment 20 

196  Stable   Equipment 20 

20  Miscellaneous  Expenditures  during  Construction 21 

201  Engineering  and  Superintendence 21 

202  Law   Expenditures 21 

203  Taxes    21 

204  Interest    22 

205  Injuries    22 

206  General  Construction   Expenses 22 

21  Other  Tangible  Gas  Capital 22 

22  Other  Intangible  Gas  Capital 23 

23  Tangible  Capital  in  other  Departments 23 

FLOATING  CAPITAL. 

251  Cash    23 

252  Bills    Receivable 24 

253  Accounts   Receivable ttWAH'A'Zy 24 


Index 


254  Other  Current  Assets 24 

255  Materials   and    Supplies 24 

256  Investments    25 

257  Sinking  Funds,  Invested 25 

258  Sinking   Funds,   Uninvested 25 

259  Special  Deposits 2(5 

260  Prepayments    26 

261  Unextinguished  Discount  on  Securities 26 

262  Suspense    27 

263  Re-acquired    Securities 27 

DEBT. 

271  Funded    Debt 28 

Unfunded    Debt 29 

272  Taxes    Accrued 29 

273  Interest  Accrued  on  Funded  Debt 30 

274  Interest  Accrued  on  Unfunded   Debt 30 

275  Judgments,    Unpaid 30 

276  Receiver's    Certificates 31 

277  BMls    Payable 31 

278  Consumer's  Deposits,  Gas 31 

279  Accounts  Payable 31 

280  Dividends    Payable 32 

281  Other  Unfunded  Debt 32 

RESERVES. 

282  Sinking  Fund  Reserves 32 

283  Reserve  for  Accrued  Depreciation 32 

284  Optional    Reserves 33 

285  Premiums  on  Capital  Stock 34 

CAPITAL  STOCK. 

286  Common    Stocks 34 

286A  Preferred    Stocks 34 

SCHEDULE  B:     INCOME  ACCOUNT. 

Operating  Revenues. 

301  Municipal    Street   Lighting 38 

302  Municipal  Mixed  Lighting  and  Power 38 

303  Municipal    Power 38 

304  Commercial    Lighting 38 

305  Commercial  Power 38 

306  Miscellaneous  Sales  of  Gas 39 

307  Sales  of  Residuals  and  Byproducts 39 

308  Miscellaneous   Gas  Revenue 39 

Non-operating  Revenues. 

321  Rent  from  Lease  of  Gas  Plant 40 

322  Rent  from  Lease  of  Real  Estate  or  Buildings 40 

323  Interest    Revenues 40 

324  Dividends   Declared 40 

325  Miscellaneous    Non-operating   Revenue 40 


OPERATING  EXPENSES. 
I.  Production  Expenses. 

Page. 

401  Superintendence  and  Labor 41 

(a)  Works,    Superintendence 41 

(b)  Boiler  House  Labor 41 

( c )  Retort  House  Labor 42 

(d)  Generator  House  Labor 42 

(e)  Miscellaneous  Labor  at  Works 42 

402  Boiler    Fuel 42 

403  Fuel  under  Retorts 42 

404  Coal    Carbonized 43 

405  Generator   Fuel 43 

406  Coal  Gas  Enricber 43 

407  Oil  (Water  Gas) 43 

408  Water  44 

409  Purification   Labor 44 

410  Purification   Supplies 44 

411  Miscellaneous  Works  Expense 44 

412  Repairs  of  Works   and   Stations 44 

413  Repairs  of  Power   Plant 45 

(a)  Furnaces,   Boilers  and  Accessories 45 

(b)  Steam    Engines ; 46 

(c)  Gas    Engines 46 

(d)  Miscellaneous   Power  Plant : 46 

414  Repairs  of  Gas  Apparatus 46 

(a)  Benches  and   Retorts 47 

(b)  Water  Gas  Sets  and  Accessories 47 

(c)  Purification    Apparatus 47 

(d)  Holders    47 

(e)  Miscellaneous    Equipment 47 

415  Repairs  of  Works  Tools 48 

416  Gas   Storage 48 

417  Purchased    Gas 48 

418  Residual    Expenses 48 


II.  Transmission  and  Distribution  Expenses. 

421  Transmission    Pumping 49 

422  Distribution    Superintendence 49 

423  Distribution  Supplies  and  Expenses 49 

424  Gas  Meter  and  Installation  Work 49 

425  Gratuitous    Work 50 

426  Repairs  of  Gas   Mains 50 

427  Repairs  of  Gas   Services 51 

428  Repairs  of  Gas  Meters 51 

429  Repairs  of  Distribution   Tools 51 

430  Repairs  of  Gas  Appliances 51 


III.  Municipal  Street  Lighting  Expenses. 
441     Street  Lamp   Operating 52 


IV.  Commercial  Expenses. 

Page. 

442  Commercial    Expense 52 

(a)  Collection    Expense 52 

(b)  Office    Expense 555 

(c)  Office    Salaries 52 

443  New    Business 52 

( a )  Advertising    53 

(b)  Appliance    Demonstrations 53 

(c)  Soliciting    53 

( d )  Gas  Appliances 53 

(e)  Gas    Engine    Expense 53 

(f )  House    Fitting 53 

V.  General  and  Miscellaneous  Expenses. 

451  Salaries — General    53 

452  Expense — General    Office 54 

453  Insurance    54 

454  Accidents  and  Damages 54 

455  Relief  Department  and  Pensions 55 

456  General  Law  Expenses 55 

457  Stable    Expenses 55 

458  Storeroom    Expenses 55 

DEDUCTIONS  FROM  INCOME. 

459  Taxes    56 

460  Uncollectible    Bills 56 

461  Interest  on  Funded  Debt 56 

462  Interest  on  Unfunded  Debt 56 

463  Inventory   Adjustments 56 

464  Miscellaneous  Non-operating  Expense 57 

APPROPRIATIONS. 

501  Extinguishment  of  Discount  on  Securities 57 

502  Depreciation  of  Plant 58 

503  Sinking    Funds 59 

504  Optional    Reserves 59 

505  Dividends   Declared 59 

506  Miscellaneous    60 

Bad  debts  collected  or  written  off.  ... , 

Expenses  elsewhere  Unprovided  for 

Additions   to    Surplus 

Deductions   from    Surplus 


REGULATIONS  ISSUED  BY  THE  PUBLIC  SERVICE 
COMMISSION  OF  MARYLAND  PRESCRIBING  A 
UNIFORM  SYSTEM  OF  ACCOUNTS  FOR  GAS  COR- 
PORATIONS. 


Issued  under  order  of  the  Commission  of  June  12th,  191 1. 


1.  On  and  after  July  1,  1911,  every  gas  corporation  engaged 
in  the  manufacture,  sale  and  distribution  of  gas,  and  every 
gas-  corporation  not  engaged  in  operation,  shall  keep  upon 
ils  hooks  the  accounts  prescribed  or  defined  in  "Schedule  A" 
so  far  as  the  said  accounts  are  pertinent  to  the  facts  and  cir- 
cumstances of  the  said  corporation.  The  term  gas  corporation 
is  used  herein  in  the  sense  defined  in  the  Public  Service  Com- 
mission Law. 

2.  <  )n  and  after  the  date  of  service  of  this  order  on  any  such 
gas  corporation,  such  corporation  shall  not  charge  to  any 
account  representing  cost  of  property  any  discount  or  com- 
mission on  securities  issued  by  the  said  corporation,  but  shall 
charge  all  such  discounts,  commissions,  and  other  expense  con- 
nected with  the  issue  of  securities  subsequent  to  the  said  date 
of  service  in  accordance  with  the  directions  contained  in  the 
definitions  of  the  account  named  "Organization,"  and  the  ac- 
count named  "Unextinguished  Discount  on  Securities,"  in  the 
said  "Schedule  A." 

:>.  On  and  after  July  1,  1911,  every  such  gas  corporation 
shall  keep  upon  its  books  the  accounts  prescribed  or  defined 
in  the  schedule  marked  "Schedule  B,"  so  far  as  the  same  are 
pertinent  to  the  facts  and  circumstances  of  the  said  corpo- 
ration. 

4.  On  and  after  July  1,  1911,  any  such  gas  corporation  may 
keep  upon  its  books  the  accounts  prescribed  or  defined  in  the 
uniform  system  of  accounts  for  gas  companies  adopted  by  the 
American  Gas  Light  Association  on  October  15,  1902,  so  far 
as  the  same  are  pertinent  to  the  facts  and  circumstances  of 
said  corporation,  in  lieu  of  the  accounts  prescribed  or  defined 
in  the  schedules  marked  "A"  and  "B";  provided,  however,  that 
there  be  tiled  with  the  Public  Service  Commission  a  statement 
containing  a  list  of  said  accounts  and  the  definitions  thereof; 
provided  further,  that  nothing  herein  shall  contravene  the  pro- 
visions of  paragraph  2  with  reference  to  the  account  named 


"Organization"  and  tlie  account  named  "Unextinguished  Dis- 
count on  Securities"  set  forth  in  the  said  -Schedule  'A.'  "  nor 
with  the  account  named  "Depreciation  of  Plant"  as  specified 
in  the  said  "Schedule  'B;'"  and  provided  further,  that  every 
such  gas  corporation  may  also  keep  upon  its  hooks  any  other 
or  additional  accounts  prescribed  or  denned  in  the  said 
"Schedule  ' A' "  or  "Schedule  'B;'"  hut  no  change  shall  he 
made  in  the  primary  accounts  prescribed  in  either  of  said 
schedules. 

5.  For  the  purpose  of  improving  the  efficiency  of  administra- 
tion and  operation,  any  corporation  may  unless  or  until  other- 
wise ordered  keep  upon  its  books  any  temporary  or  experi- 
mental accounts  and  any  accounts  covering  particular  divisions 
of  its  operations,  hut  no  change  shall  be  made  in  the  primary 
accounts  prescrihed  in  either  "Schedule  'A'  "  or  "Schedule  'B'  " 
or  in  the  accounts  prescribed  in  the  uniform  system  of  accounts 
for  gas  companies  adopted  by  the  American  Gas  Light  Associa- 
tion on  October  1."),  1902,  without  the  assent  of  the  Public 
Service  Commission  being  first  obtained. 

6.  All  notices  herein  required  to  be  filed  covering  accounts 
shall  be  upon  sheets  Sy2  inches  by  11  inches  in  size,  and  shall 
be  entitled  in  the  name  of  the  corporation  tiling  said  notices, 
followed  by  a  brief  statement  of  the  character  of  the  accounts 
covered  by  the  notice. 

SCHEDULE  A. 

BALANCE  SHEET  OK   INDICANT  ACCOUNTS. 

1 
GAS    CORPORATIONS    AND    GAS   OPERATIONS 
DEFINED. 

Section  1  of  the  Public  Service  Commission  Law  defines  a 
Gas  Corporation  as  follows: 

The  term  "Gas  Corporation"  when  used  in  I  his  Act,  includes 
every  corporation,  company,  association,  joint  stock  company, 
partnership  and  person,  their  lessees,  trustees  of  receivers 
appointed  by  any  Court  whatsoever,  owning,  operating,  man- 
aging or  controlling  any  plant  or  property  for  manufacturing 
and  distributing  and  selling  for  distribution  or  selling  or  dis- 


tributing  illuminating  gas  (natural  or  artificial  or  manu- 
factured, and  wheresoever  and  howsoever  derived  or  obtained) 
for  light,  heat,  fuel  or  power,  or  for  any  public  use  whatever. 

Gas  Operations, 

As  the  term  is  hereinafter  used,  include  all  acts  and  trans- 
actions directly  connected  with  the  operation  of  a  plant  for 
the  production  of  gas  (whether  natural  or  manufactured),  the 
transmission  thereof  and  the  supply  thereof  to  consumers  for 
light,  heat  or  power,  and  all  operations  incident  thereto,  in- 
cluding the  collection  of  revenues  therefor  and  the  disposition 
of  byproducts  produced  in  connection  therewith. 

ACCOUNTS  TO  1510  KEPT  BY  DOUBLE-ENTBY  METHOD. 

All  accounts  kept  by  any  corporation  or  person  within  the 
scope  of  the  present  order  shall  on  and  after  June  30,  11)11,  be 
kept  by  the  double-entry  method. 

NOTE. — This  requirement  is  not  intended  to  apply  to  purely  statis- 
tical accounts. 

CAPITAL  ACCOUNTS. 

By  Capital  as  herein  used,  is  meant  all  property  of  a  corpo- 
ration devoted  to  the  rendering  of  the  services  or  the  produc- 
tion of  the  commodities  which  are  within  the  purposes  of  the 
corporation. 

FIXED  CAPITAL. 

Fixed  Capital  is  capital  which  has  an  expectation  of  life  in 
service  of  more  than  one  year  (exception  being  made  of  hand 
and  other  small  portable  tools  liable  to  be  lost  or  stolen). 

Fixed  Capital  is  divisible  into: 

(a)     Original  Capital. 
That  put  into  service  at  the  outset  of  an  enterprise. 


(b)  Additions. 

Such  additional  .structures,  facilities  or  equipment  as  do 
not  take  the  place  of  anything  previously  existing. 

(c)  Betterments. 

The  enlargement  or  improvement  of  existing  structures, 
facilities  and  equipment. 

(d)  Fate  teals. 

All  extensions  of  terms  of  years  in  land  and  tangible  fixed 
capital  and  all  extensions  of  the  life  period  of  franchises  and 
other  intangible  fixed  capital. 

(e)  Replacements. 

All  substitutions  for  capital  exhausted  or  become  inadequate 
in  service,  the  substitutes  having  practically  no  greater  capac- 
ity than  the  things  for  which  they  were  substituted. 

When  through  wear  and  tear  or  through  casualty  it  be- 
comes necessary  to  replace  some  part  of  any  structure,  facil- 
ity or  unit  of  equipment  and  the  extent  of  such  replacement 
docs  not  amount  to  a  substantial  change  of  identity  in  such 
structure,  facility  or  unit  of  equipment,  the  replacement  is  to 
be  considered  a  repair,  and  the  cost  of  such  repair  is  to  be 
treated  as  an  operating  expense  and  must  not  be  charged  as 
a  replacement  in  any  capital  account. 

Fixed  Capital  is  also  divided  into  landed  capital  and  non- 
landed  capital.  Landed  Capital  includes  all  interests  in  land 
(exclusive  of  improvements  thereon)  the  term  of  which  is  more 
than  one  year.  All  other  fixed  capital  is  herein  called  Non- 
Landed  Capital. 

Intangible  and  Tangible  Capital  Defined. 

Non-landed  capital  is  divisible  into  intangible  ami  tangible. 
Intangible  capital  comprises  organization,  franchises,  patenl 
rights,  and  all  other  intangible  property  within  the  definition 


of  fixed  non-landed  capital  as  above  stated.  Tangible  Capital 
comprises  structures  and  equipment  having-  an  expectation  of 
life  in  service  of  more  than  one  year.  Because  of  their  liability 
to  loss  or  theft,  hand  and  other  small  portable  tools  are  ex- 
cepted from  tangible  capital,  and  the  cost  of  such  tools  is  re- 
quired to  be  treated  as  a  part  of  the  expenses.  Hand  and 
other  small  portable  tools  when  first  acquired  and  before 
issued  for  use  may  be  charged  to  the  "Materials  and  Supplies" 
account,  and  when  issued  charged  to  the  appropriate  expense 
account  and  the  account  "Materials  and  Supplies"  credited 
with  same. 

FLOATING  CAPITAL. 
Capital  other  than  fixed  capital  is  called  floating  capital. 

PLANT,  EQUIPMENT  AND  OTHER  CAPITAL 
PURCHASED. 

When  any  fixed  capital  in  the  form  of  a  going  or  completed 
plant  is  purchased,  an  appraisal  of  such  capital  so  acquired 
shall  be  made,  and  the  different  constituent  elements  of  the 
plant,  equipment  or  other  capital  acquired  shall  be  appraised 
at  their  then  structural  value;  that  is  to  say,  at  the  estimated 
cost  of  replacement  or  reproduction  less  a  proper  allowance 
for  depreciation  based  upon  the  length  of  time  the  plant  has 
been  in  service  and  for  such  part  of  the  plant  as  may  be  ob- 
solete or  inadequate  for  economical  use. 

If  the  actual  money  value  of  the  consideration  given  for 
the.  plant  or  other  capital  was,  at  the  time  of  acquisition,  in 
excess  of  such  appraised  value,  the  excess  shall  be  charged  to 
the  account  "Other  Intangible  Gas  Capital"  and  the  appraised 
values  of  the  constituent  parts  shall  be  charged  to  the  appro- 
priate accounts  as  designated  in  the  following  definitions  of 
accounts  for  fixed  capital. 

If  the  actual  money  value  of  the  consideration  given  was 
not  in  excess  of  such  appraised  value,  such  money  value  shall 
be  distributed  through  the  said  accounts  in  proportion  to  the 
said  appraised  value  of  the  constituent  parts  appropriate  to 


the  respective  accounts.  Full  report  of  the  contract  of 
acquisition,  the  consideration  given  therefor,  the  determination 
of  the  actual  money  value  of  such  consideration,  the  appraisal 
and  the  amounts  charged  to  the  respective  accounts  for  each 
plant  or  other  such  fixed  capital  purchased,  will  be  required  to 
be  made  to  the  Public  Service  Commission. 

COSTS  OF  NEW  CAPITAL. 

All  charges  made  to  capital  or  other  accounts  on  or  after 
July  1,  1911,  shall  l>e  the  actual  money  cost  of  the  things  in 
respect  of  which  they  are  made.  When  the  consideration 
actually  given  for. the  thing  in  respect  of  which  a  charge  to  a, 
capital  account  is  made  is  anything  other  than  money,  the 
actual  consideration  shall  be  described  in  the  entry  with  suf- 
ficient fullness  and  particularity  to  identify  it,  and  the  amount 
charged  shall  be  the  actual  money  value  of  such  considera- 
tion at  the  time  of  the  transaction. 

COSTS  OF  LABOR,  MATERIALS  AND  SUPPLIES. 

Cost  of  labor  (employed  in  construction  I  includes  not  only 
wages,  salaries  and  fees  paid  employes,  but  also  such  personal 
expenses  of  employes  as  are  borne  by  the  corporation. 

Cost  of  materials  and  supplies  consumed  in  construction  is 
the  cost  at  the  place  where  they  enter  into  construction,  in- 
cluding cost  of  transportation  and  inspection  when  specifically 
assignable. 

DISCOUNTS  ON  SECURITIES. 

Discounts  upon  securities  or  commercial  paper  issued  in  pay- 
ment for  capital  are  to  be  provided  for  in  other  accounts  ami 
must  in  no  case  be  charged  to  capital  accounts. 

WITHDRAWALS  OK   RETIREMENTS. 

When  anything  is  withdrawn  or  retired  from  service,  the 
amount  at  which  such  thing  stood  charged  in  the  capital  ae- 
count  shall  be  credited  to  the  capital  account  in  which  it  stood 


charged  at  the  time  of  withdrawal,  and  the  entry  of  such  credit 
shall  give  by  name  and  page  of  book  or  other  record  the  original 
entry  of  cost  of  the  thing  withdrawn.  If  there  is  no 
such  original  entry,  that  fact  shall  be  stated  in  connection 
with  the  credit  entry.  If  such  amount  is  not  known,  it  shall 
be  estimated,  the  facts  upon  which  the  estimate  is  based  shall 
be  shown  and  the  amount  thus  estimated  to  be  the  original 
charge  in  respect  of  such  thing  withdrawn  shall  be  credited. 


PARTICULARS  REQUIRED  TO  BE  SHOWN  IX  ENTRIES. 

Every  charge  made  to  a  capital  account  on  and  after  July 
1.  L911,  shall  show  whether  the  thing  in  respect  to  which  the 
charge  is  made  is  original  capital,  or  an  addition,  a  betterment, 
a  renewal  or  a  replacement.  If  the  thing  is  a  betterment,  re- 
newal or  replacement  the  entry  shall  designate  the  thing  en- 
larged, improved,  renewed  or  replaced  and  shall  state  by  name 
and  page  of  book  or  other  record  of  entry  the  original  cost  of 
such  thing  enlarged,  improved,  renewed  or  replaced.  If  there 
is  no  entry  in  the  accounts  showing  the  cost  ( to  the  corpora- 
tion)  of  such  thing  bettered,  renewed  or  replaced  that  fact 
shall  be  stated  in  the  entry,  and  the  cost  shall  be  estimated,  if 
not  known,  and  when  estimated  the  basis  of  such  estimate  shall 
be  shown. 

If  any  betterment  involves  the  partial  destruction  or  partial 
reconstruction  of  the  thing  bettered,  only  such  portion  of  the 
cost  of  the  change  shall  be  charged  as  a  betterment  as  will  when 
added  to  the  original  cost  (estimated  if  not  known)  of  the 
thing  bettered  give  the  cost  of  reconstruction  or  replacement 
of  the  thing  as  bettered,  and  the  remainder  of  the  cost  of 
change  (account  being  taken  of  any  salvage)  shall  be  charged 
to  the  appropriate  repair  account. 

First  entries  to  all  capital  accounts  in  respect  of  any  par- 
ticular thing  shall  describe  it  with  such  particularity  as  to  en- 
able its  identification  and  shall  give  it  a.  distinguishing  name, 
number,  or  other  designation  by  which  it  shall  thereafter  be 
designated  in  every  entry  in  any  capital  account  which  in 
any  way  concerns  it. 


10 

DEFINITIONS.  OF   FIXED    CAPITAL   ACCOUNTS. 

In  the  following  definitions  of  accounts  the  numbers  pre- 
fixed to  the  titles  are  inserted  solely  for  convenience  of  refer- 
ence and  are  no  part  of  the  titles  or  definitions.  The  initials 
"P.  A."  affixed  to  the  titles  indicate  the  "Primary  accounts." 

I— FIXED  CAPITAL  JUNE  30,  1911. 

Charge  to  this  account  all  the  Fixed  Capital  (that  is,  the 
total  cost  of  all  land,  plant,  equipment,  apparatus,  etc.,  other 
than  materials  and  supplies,  hand  and  other  small  tools)  of 
the  accounting  person  or  corporation  as  such  capital  stood  at 
the  close  of  June  30,  1911.  Such  charges  shall  be  made  at  the 
figures  at  which  such  capital  was  carried  on  the  books  of  the 
said  person  or  corporation  on  that  date.  When  any  capital 
included  in  such  account  is  retired  from  service,  the  amount 
at  which  it  is  charged  therein  shall  be  credited  to  this  account ; 
and  the  amount  originally  charged  to  capital,  less  any  salvage 
that  may  occur,  shall  be  concurrently  charged  to  the  account 
"Reserve  for  Depreciation"  (or  equivalent  account  carried  on 
the  books  on  June  30,  1911,  unless  there  was  carried  on  the 
books  at  that  date  a  reserve  to  cover  retirements  of  capital 
from  service,  in  which  case  the  said  concurrent  charge  shall  be 
made  to  such  retirement  account.  If  the  amount  at  which 
said  capital  in  service  on  June  30,  1911  (and  subsequently  re- 
tired from  service)  was  included  in  the  said  account  is  not 
disclosed  on  the  books  and  records  of  the  accounting  person  or 
corporation  and  is  not  within  the  knowledge  of  such  person 
or  corporation  or  officers  or  other  employes  thereof,  it  shall 
be  estimated  and  such  estimated  amount  shall  be  treated  as  is 
above  directed  for  the  actual  amount,  the  fact  of  estimation  be- 
ing stated  in  the  entry. 

The  Following  Capital  Accounts  Are  Prescribed  For  Trans- 
actions Subsequent  to  June  30,  1011. 

II— ORGANIZATION.— P.  A. 

Charge  to  this  account  all  fees  paid  to  governments  for  the 
privilege  of  incorporation,  and  all  office  and  other  expenditure 


11 

incident  to  organizing  the  corporation  or  other  enterprise  and 
putting  it  in  readiness  to  do  business.  This  includes  cost  of 
preparing  and  distributing  prospectuses,  cost  of  soliciting  sub- 
scriptions for  stock  (but  not  for  loans  nor  for  the  purchase  of 
bonds  or  other  evidence  of  indebtedness),  cash  fees  paid  to 
promoters,  and  the  actual  cash  value  at  the  time  of  organiza- 
tion of  securities  paid  to  promoters  for  their  services  in  organ- 
izing the  enterprise,  counsel  fees,  cost  of  preparing  and  issuing 
certificates  of  stock,  and  cost  of  procuring  certificates  of  neces- 
sity from  state  authorities,  and  other  like  costs.  Like  costs 
incident  to  preparing  and  filing  certificates  of  authorization 
of  increase  of  capital  stock,  and  to  the  negotiation  and  issue 
of  stock  thereunder,  shall  be  classed  as  additions.  Cost  of 
preparing  and  filing  certificates  of  amendment  of  articles  of 
incorporation  shall  be  classed  as  a  betterment.  This  account 
shall  not  include  any  discounts  upon  stocks  or  other  securities 
issued,  nor  shall  it  include  any  costs  incident  to  negotiating 
loans  or  selling  bonds  or  other  evidence  of  indebtedness. 

12— ROYALTIES,  FRANCHISES  AND  LICENSES.— P.  A. 

Charge  to  this  account  the  cost  of  royalties  or  licenses  paid 
to  licensors,  and  payments  to  city,  town  or  state  (exclusive  of 
taxes)  for  franchises.  If  any  such  franchise  has  a  life  of  not 
more  than  one  year  after  the  date  when  it  is  placed  in  service, 
it  shall  not  be  charged  to  this  account,  but  to  the  appropriate 
accounts  in  "Operating  Expenses,"  and  in  "Prepayments''  if 
extending  beyond  the  fiscal  year. 

13— MANUFACTURING  PLANT.— P.  A. 

131 — Land. 

Charge  to  this  account  the  cost  of  all  land  used  in  the  opera- 
tions of  the  corporation,  including  rights  of  way  for  transmis- 
sion and  distribution  lines  and  for  canal  and  pipe  lines,  water 
rights,  rights  of  pondage,  flowage  and  submersion.  Such  cost 
includes  cost  of  registration  of  title,  cost  of  examination  of 
title,  conveyancer's  and  notary's  fees,  purchasing  agent's  com- 
mission or  fees,  or  purchasing  agent's  salary,  taxes  accrued  to 


12 

date  of  transfer  of  title  and  all  liens  upon  the  title  accrued  to 
date  of  transfer  of  title  and  all  liens  upon  the  title  acquired; 
also  costs  of  obtaining  consents  and  payments  for  abutting 
damages.  This  account  should  also  include  the  cost  of  wreck- 
ing or  removing  any  buildings  thereon,  less  the  salvage,  to  pre- 
pare the  land  for  the  corporation's  purposes. 

NOTE. — Cost  of  buildings  and  other  improvements  must  not  be  in- 
cluded in  this  account. 

132 — Buildings  and  Structures. 

Charge  to  this  account  the  cost  of  the  power  plant,  sub- 
station, and  all  other  buildings,  also  of  all  fixtures  perma- 
nently attached  thereto  and  made  a  part  thereof,  such  as  water 
pipes  and  fixtures,  steam  pipes  and  fixtures  for  lighting,  warm- 
ing and  ventilating,  gas  pipes  and  fixtures  for  lighting,  elec- 
tric wiring  and  fixtures  for  lighting,  signaling,  and  the  like, 
elevators  and  the  motive  power  for  operating  same,  and  heat- 
ing apparatus.  This  account  also  includes  stacks  and  such 
piers  and  other  foundations  for  machinery  and  apparatus  as 
are  designated  to  be  as  permanent  as  the  buildings  in  which 
they  are  constructed  and  to  outlast  the  first  machinery  or  ap- 
paratus mounted  thereon.  Charge  also  the  cost  of  architect's 
plans  and  of  superintendence  of  construction. 

133 — Holders. 

Charge  to  this  account  the  cost  of  all  holders  at  works  and 
outlying  stations,  including  tanks,  foundations,  holders,  frame 
work,  guides,  pulleys,  etc.,  and  inlet  and  outlet  valves  of  such 
holders. 

134 — Furnaces,  Boilers  and  Accessories. 

Charge  to  this  account  the  cost  of  all  furnaces,  boilers,  and 
boiler  apparatus  and  accessories  devoted  to  the  production  of 
steam  for  use  in  producing  gas  and  in  furnishing  motive  power 
in  gas  works  and  stations.  This  includes  boilers  and  valves 
thereto  attached,  appurtenant  furnaces  and  grates,  and  Hues 
leading  to  smokestacks  and  chimneys,  and   the  specially  pro 


13 


vided  foundations  and  settings  of  such  boilers  and  appur- 
tenances; also  iron  smokestacks.  It  also  includes  mechanical 
stokers  and  other  like  apparatus  for  regulating  the  supply  of 
fuel,  feed  a^id  hot  water  heaters  and  economizers,  injectors, 
filters,  feed  pumps,  blower  engines,  coal  conveyors,  ash  con- 
veyors, water  pipes,  steam  traps,  drains,  and  separators,  and 
pipes  for  conducting  steam  from  the  boiler  to  engine,  to  con- 
densers, or  to  the  gas  generators,  exhaust  pipes,  etc.  It  does 
not  include  steam  pipes  whose  primary  purpose  is  the  heating 
of  buildings. 

135 — Steam  Engines. 

Charge  to  this  account  the  cost  of  all  steam  engines  devoted 
to  use  as  prime  movers  in  gas  works.  This  includes  the 
specially  provided  foundations  and  settings  of  such  engines. 
The  engine,  whether  reciprocating  or  rotary  (such  as  steam 
turbines),  shall  be  considered  to  include  the  throttle  or  inlet 
valve  and  the  governor;  also  condensers  and  air  pumps,  but 
not  the  steam  pipe  leading  from  the  boiler,  nor  the  exhaust 
pipe. 

136 — Gas  Engines. 

Charge  to  this  account  the  cost  of  all  gas  engines  devoted  to 
use  as  prime  movers  in  gas  works  and  stations.  This  includes 
the  specially  provided  foundations  and  settings  of  such  en- 
gines. The  engine  includes  the  inlet  valve  and  governor,  and 
ignition  and  starting  apparatus,  but  not  the  pipe  leading  from 
the  gas  holder,  nor  the  exhaust  pipe. 

137 — Miscellaneous  Power  Plant  Equipment. 

Charge  to  this  account  the  cost  of  all  miscellaneous  power 
plant  equipment  at  gas  works  which  is  not  includible  in  any 
of  the  foregoing  accounts.  This  includes  such  mechanical  ap- 
paratus as  belts,  pulleys,  hangers,  countershafts,  and  other  ap- 
paratus intermediary  between  prime  movers  and  the  apparatus 
operated,  cranes,  hoists,  etc.,  and  machine  tools  and  such  other 
tools  at  power  plants  as  are  proper  to  be  capitalized,  etc. 


14 

138 — Benches  and  Retorts. 

Charge  to  this  account  the  cost  of  all  benches  and  retorts 
devoted  to  the  production  of  coal  gas.  This  iucludes  the  cost 
of  the  specially  provided  foundations  and  settings  and  auxili- 
ary piping,  including  foul  and  hydraulic  mains. 

139 — Water  Gas  Sets  and  Accessories. 

Charge  to  this  account  the  cost  of  sets  and  accessories  de- 
voted to  the  production  of  water  gas,  including  the  cost  of 
specially  provided  foundations  and  settings  for  such  sets. 

This  also  includes  the  cost  of  generators,  carbureters,  super- 
heaters, seals  and  piping  connected  therewith  and  blast  ap- 
paratus, oil  and  steam  supplying  apparatus,  oil  heaters,  etc. 
It  does  not  include  pipes  whose  primary  purpose  is  the  warm- 
ing of  buildings. 

140 — Purification  Apparatus. 

Charge  to  this  account  the  cost  of  all  purification  apparatus, 
such  as  condensers,  washers,  scrubbers,  purifiers,  tar  extract- 
ors, etc.,  and  their  auxiliary  apparatus  and  piping,  including 
the  cost  of  specially  provided  foundations  and  settings. 

141 — Accessory  Equipment  at  Works. 

Charge  to  this  account  the  cost  of  all  equipment  at  works, 
substations  and  holder  stations  which  is  not  includible  under 
any  of  the  foregoing  accounts.  This  includes  exhausters,  sta- 
tion meters,  governors,  etc.;  apparatus  for  charging  retorts; 
conveyors  for  disposing  of  coke  and  other  products  and  re- 
siduals ;  tar  and  ammonia  apparatus,  pumps,  pipes,  tanks,  etc. 

15— TRANSMISSION  AND  DISTRIBUTION.— P.  A. 

I 

%  1 

151 — Land. 

Charge  to  this  account  (he  cost  of  all  land  used  in  the  opera 
lions  of  the  corporation,  including  rights  of  way  for  transuiis 


15 


sion  and  distribution  lines  and  for  canal  and  pipe  lines,  water 
rights,  rights  of  pondage,  flowage  and  submersion.  Such  cost 
includes  cost  of  registration  of  title,  cost  of  examination  of 
title,  conveyancer's  and  notary's  fees,  purchasing  agent's  com- 
missions or  fees,  or  purchasing  agent's  salary,  taxes  accrued 
to  date  of  transfer  of  title  and  all  liens  upon  the  title  accrued 
to  date  of  transfer  of  title  and  all  liens  upon  the  title  acquired; 
also  costs  of  obtaining  consents  and  payments  for  abutting 
damages.  This  account  should  also  include  the  cost  of  wreck- 
ing and  removing  any  buildings  thereon,  less  the  salvage,  to 
prepare  the  land  for  the  corporation's  purposes. 

NOTE.— Cost  of  buildings  and  other  improvements  must  not  be  in- 
cluded in  this  account. 

152 — Trunk  Lines  and  Mains. 

Charge  to  this  account  the  cost  of  all  trunk  lines  and  mains 
in  place  on  June  30,  11)11.  This  includes  all  pipe  lines  from 
yard  connections  to  district  holders,  and  from  the  works  gov- 
ernors to  the  beginnings  of  services,  including  the  cost  of  all 
trenching,  etc.,  necessary  to  the  placing  of  the  pipe,  and  the 
cost  of  filling  trenches,  restoring  the  surface  to  its  former  con- 
dition or  to  that  required  by  the  municipal  authorities  at  the 
time  the  line  is  installed. 


I53 — Street  Mains,  Extension  and  Improvement. 

This  account  is  intended  to  show  the  total  cost  of  labor 
and  material  of  all  new  mains  laid  and  the  cost  of  laying  new 
street  mains  to  replace  old  mains  subsequent  to  July  1,  1911. 

In  case  new  mains  are  laid  charge  this  account  with  the  cost 
of  all  labor  and  material,  including  cartage,  city  permits, 
trenching,  paving,  etc. 

In  case  of  old  mains,  laid  before  July  1,  1911,  replaced  by 
mains  of  larger  size,  charge  this  account  and  credit  "Trunk 
Lines  and  Mains"  with  the  original  cost  of  old  mains  when 
laid,  less  present  value  of  material  recovered  and  taken  into 
storeroom.  If  original  cost  cannot  be  arrived  at,  use  estimated 
cost  based  upon  present  cost  of  laying  same  size  pipe. 


16 

In  case  of  old  main,  laid  before  July  1,  1911,  and  abandoned 
and  left  in  the  ground,  charge  "Reserve  for  Depreciation"  and 

credit  "Trunk  Lines  and  Mains"  with  the  original  cost  of  the 
old  main  when  laid.  If  original  cost  cannot  be  arrived  at,  use 
estimated  cost  based  upon  present  cost  of  laying  same  size  pipe. 

NOTE.— Debits  to  this  account  and  to  "Reserve  for  Depreciation"  for 
mains  abandoned  must  be  analyzed  in  the  report  to  the  Public  Service 
Commission. 

154 — Gas  Services. 

Charge  to  this  account  the  cost  of  the  corporation's  property 
in  service  pipes  and  appurtenances  in  or  leading  to  consumers' 
premises.  This  includes  the  cost  of  material  in  place,  cost  of 
trenching  for  placing  services,  and  of  filling  trenches  and  re- 
storing surface  to  proper  condition. 

NOTE  A. — When  consumers  are  required  to  pay  some  or  all  of  the 
cost  of  services  only  that  portion  of  the  cost  not  chargeable  to  the  con- 
sumer is  chargeable  to  this  account. 

NOTE  B—  The  cost  of  renewing  or  modifying  services  shall  not  be 
charged  to  this  account. 

155 — Gas  Meters. 

Charge  to  this  account  the  cost  of  the  corporation's  property 
in  all  meters  and  appurtenances  used  in  measuring  the  gas 
delivered  consumers. 

,  NOTE  A. — This  account  does  not  include  the  cost  of  the  corporation's 
meters  at  the  works.  Such  cost  shall  be  charged  to  account  No.  23, 
"Accessory  Equipment  at  Works." 

NOTE  B—  The  cost  of  setting,  removing,  or  re-setting  such  meters 
shall  not  be  charged  to  this  account. 

156 — Gas  Meter  Installation. 

Charge  to  this  account  the  cost  of  labor  and  materials  (ex- 
clusive of  cock  and  connections)  of  the  first  set  ling  of  meters 
for  determining  the  amount  of  gas  delivered  to  consumers,  in 


IT 


case  it  is  the  policy  of  1h<  corporation  to  capitalize  the  cost  of 
such  setting. 


16— MUNICIPAL  STREET  LIGHTING  FIXTURES.— P.  A. 

Charge  to  this  account  the  cost  of  the  corporation's  property 
in  the  lamps,  posts,  and  auxiliary  apparatus  and  appliances 
used  in  lighting  streets  for  a  municipal  corporation.  Such 
cost  includes  not  only  cost  of  material  but  also  cost  of  first 
setting  and  coupling  up.  It  does  not  include  cost  of  removal 
or  change  of  position. 

NOTE. — Where  the  municipality  requires  for  its  special  benefit  the 
extension  of  mains  and  services  for  street  lighting,  such  extensions 
may,  so  long  as  used  solely  for  street  lighting,  be  charged  to  this  ac- 
count, provided  a  full  description  of  the  extensions  so  charged  and  the 
amounts  charged  in  respect  thereof  be  filed  with  the  Public  Service 
Commission  on  or  before  the  date  when  the  entry  thereof  is  made  upon 
the  books  of  the  corporation. 


3  7—  (IAS  ENGINES  AND  APPLIANCES.— P.  A. 

Charge  to  this  account  the  cost  of  the  corporation's  property 
in  gas  engines  leased  to  consumers  (including  municipal  corpo- 
rations), but  not  those  held  for  purposes  of  sale.  Such  en- 
gines include  all  appliances  for  the  production  of  mechanical 
motion  through  the  consumption  of  gas.  Also  charge  to  this 
account  the  cost  of  the  corporation's  property  in  all  gas  stoves 
and  other  heating  appliances  leased  to  consumers,  but  not 
those  held  for  purposes  of  sale.  This  includes  stoves,  ranges, 
heaters,  hot  plates,  sadirons,  tailors'  irons  and  gooses,  and 
other  like  devices  and  appliances  consuming  gas  for  the  direct 
production  of  heat. 

NOTE. — The  cost  of  setting  and  connecting  such  engines  and  heating 
appliances  on  the  premises  of  consumers  and  the  cost  of  re-setting  or  of 
removal  shall  not  be  charged  to  this  account. 


18 
IS— GENERAL  OFFICE  AND  BRANCHES.— P.  A. 

181 — Land. 

Charge  to  this  account  the  cost  of  all  land  used  in  the  opera- 
tions of  the  corporation,  including  rights  of  way  for  transmis- 
sion and  distribution  lines  and  for  canal  and  pipe  lines,  water 
rights,  rights  of  pondage,  flowage  and  submersion.  Such  cost 
includes  cost  of  registration  of  title,  cost  of  examination  of 
title,  conveyancer's  and  notary's  fees,  purchasing  agent's  com- 
missions or  fees,  or  purchasing  agent's  salary,  taxes  accrued 
to  date  of  transfer  of  title  and  all  liens  upon  the  title  accrued 
to  date  of  transfer  of  title  and  all  liens  upon  the  title  acquired ; 
also  costs  of  obtaining  consents  and  payments  for  abutting 
damages.  This  account  should  also  include  the  cost  of  wreck- 
ing or  removing  any  buildings  thereon,  less  the  salvage,  to 
prepare  the  land  for  the  corporation's  purposes. 

NOTE. — Cost  of  buildings  and  other  improvements  must  not  be  in- 
cluded in  this  account. 

182 — Buildings  and  Structures. 

Charge  to  this  account  the  cost  of  the  power  plant,  sub- 
station, and  all  other  buildings,  also  of  all  fixtures  perma- 
nently attached  thereto  and  made  a  part  thereof,  such  as  water 
pipes  and  fixtures,  steam  pipes  and  fixtures  for  lighting,  warm- 
ing and  ventilating,  gas  pipes  and  fixtures  for  lighting,  electric 
wiling  and  fixtures  for  lighting,  signaling,  and  the  like,  eleva- 
tors and  the  motive  power  for  operating  same,  and  heating 
apparatus.  This  account  also  includes  stacks  and  such  piers 
and  other  foundations  for  machinery  and  apparatus  as  are 
designated  to  be  as  permanent  as  the  buildings  in  which  they 
are  constructed  and  to  outlast  the  first  machinery  or  apparatus 
mounted  thereon.  Charge  also  the  cost  of  architect's  plans 
and  of  superintendence  of  construction. 

183 — Furniture  and  Fixtures. 

Charge  to  this  account  the  cost  of  all  equipment  of  general 
offices,    such    as    desks,    chairs,    tables,    movable    safes,    filing 


19 

cases,  drafting  room  equipment,  and  other  like  office  appliances 
and  equipment ;  also  engineering  instruments. 


19— OTHER  EQUIPMENT.— P.  A. 

191 — Land. 

Charge  to  this  account  the  cost  of  all  land  used  in  the  opera- 
tions of  the  corporation,  including  rights  of  way  for  transmis- 
sion and  distribution  lines  and  for  canal  and  pipe  lines,  water 
rights,  rights  of  pondage,  tiowage  and  submersion.  Such  cost 
includes  cost  of  registration  of  title,  cost  of  examination  of 
title,  conveyancer's  and  notary's  fees,  purchasing  agent's  com- 
missions or  fees,  or  purchasing  agent's  salary,  taxes  accrued  to 
date  of  transfer  of  title  and  all  liens  upon  the  title  accrued  to 
date  of  transfer  of  title  and  all  liens  upon  the  title  acquired; 
also  costs  of  obtaining  consents  and  payments  for  abutting 
damages.  This  account  should  also  include  the  cost  of  wreck- 
ing or  removing  any  buildings  thereon,  less  the  salvage,  to  pre- 
pare the  land  for  the  corporation's  purposes. 

NOTE. — Cost  of  buildings  and  other  improvements  must  not  be  in- 
cluded in  this  account. 

192 — Buildings  and  Structures. 

Charge  to  this  account  the  cost  of  the  power  plant,  sub- 
station, and  all  other  buildings,  also  of  all  fixtures  perma- 
nently attached  thereto  and  made  a  part  thereof,  such  as  water 
pipes  and  fixtures,  steam  pipes  and  fixtures  for  lighting,  warm- 
ing and  ventilating,  gas  pipes  and  fixtures  for  lighting,  elec- 
tric wiring  and  fixtures  for  lighting,  signaling,  and  the  like, 
elevators  and  the  motive  power  for  operating  same,  and  heat- 
ing apparatus.  This  account  also  includes  stacks  and  such 
piers  and  other  foundations  for  machinery  and  apparatus  as 
are  designated  to  be  as  permanent  as  the  buildings  in  which 
they  are  constructed  and  to  outlast  the  first  machinery  or 
apparatus  mounted  thereon.  Charge  also  the  cost  of  architect's 
plans  and  of  superintendence  of  construction. 


20 

193 — Gas  Tools  and  Implements. 

Charge  to  this  account  as  follows : 

(a)  The  cost  of  all  tools  and  implements  coming  within  the 
scope  of  the  definition  of  fixed  capital  (that  is,  having  an  ex- 
pectation of  life  in  service  of  more  than  one  year)  and  not  cov- 
ered by  any  of  the  foregoing  equipment  accounts. 


194 — Laboratory  Equipment. 

Charge  to  this  account  the  cost  of  all  physical  and  chemical 
apparatus  used  in  testing,  and  other  technological  work,  and  of 
all  equipment  in  laboratories  used  for  technological  work,  such 
as  calorimetry,  photometry,  chemical  analysis,  and  the  like; 
also  all  equipment  for  testing  building  and  other  materials 
used  in  the  engineering  operations  of  the  company. 

NOTE. — This  account  can  be  distributed  to  the  appropriate  operating 
accounts  monthly,  or  at  close  of  year,  if  desired. 


195 — Storeroom  Equipment. 

Charge  to  this  account  the  cost  of  all  equipment  in  store- 
rooms, such  as  counters,  shelving,  carts,  barrels,  trucks  and 
other  apparatus  and  appliances  used  in  the  handling  of  mate- 
rials and  supplies. 

NOTE. — This  account  can  be  distributed  to  the  appropriate  operating 
accounts  monthly,  or  at  close  of  year,  if  desired. 


196 — Stable  Equipment. 

Charge  to  this  account  the  cost  of  all  equipment  of  general 
stables,  including  horses,  harness,  drays,  wagons,  automobiles 
and  other  vehicles. 

NOTE. — This  account  can  be  distributed  to  the  appropriate  operating 
accounts  monthly,  or  at  close  of  year,  if  desired. 


21 

20— MISCELLANEOUS  CONSTRUCTION  EXPENDI- 
TURES.—P.  A. 

Charge  to  this  account  expenditures  during  construction,  as 
follows : 


201 — Engineering  and  Superintendence. 

Charge  to  this  account  all  expenditures  for  services  of  engi- 
neers, draftsmen  and  superintendents  employed  on  preliminary 
and  construction  work,  and  all  expenses  incident  to  the  work, 
when  such  disbursements  can  not  be  assigned  to  specific  con- 
struction. 


202 — Law  Expenditures. 

Charge  to  this  account  all  expenditures  incurred  in  connec- 
tion with  the  construction  of  a  gas  plant,  such  as  the  pay  and 
expense  of  all  counsel,  solicitors  and  attorneys,  their  clerks 
and  attendants,  and  expenses  of  their  offices,  printing  of  briefs, 
legal  forms,  testimony  reports,  and  the  like ;  payments  to  arbi- 
trators for  the  settlement  of  disputed  questions,  costs  of  suit 
and  payments  of  special  fees,  notarial  fees  and  witness  fees, 
and  expense  connected  with  taking  depositions;  also  all  legal 
and  court  expenses.  When  any  of  the  expenditures  above 
enumerated  can  be  charged  directly  to  the  account  for  which 
incurred,  they  should  be  so  charged,  and  not  to  this  account. 
Expenditures  in  connection  with  the  acquisition  of  the  right 
of  way  or  other  land  should  be  charged  to  Land.  Law  ex- 
penditures in  connection  with  the  organization  of  the  corpora- 
tion should  be  charged  to  Organization. 


203 — Taxes. 

Charge  to  this  account  all  taxes  and  assessments  levied  and 
paid  on  property  belonging  to  the  corporation  while  under 
construction  and  before  the  plant  is  opened  for  commercial 
operation. 


22 
204 — Interest. 

Charge  to  this  account  the  interest  accrued  upon  all  moneys 
and  credits  available  upon  demand,  acquired  for  use  in  con- 
nection with  the  construction  and  equipment  of  the  property, 
from  the  time  of  such  acquisition  until  the  construction  is 
ready  for  use.  Interest  receivable  accrued  upon  such  moneys 
and  credits  should  be  credited  to  this  account.  To  this  ac- 
count should  also  be  credited  discounts  realized  through 
prompt  payment  of  bills  incurred  for  the  particular  construc- 
tion involved. 


205 — Injuries. 

Charge  to  this  account  all  expenditures  incident  to  injuries 
to  persons  when  caused  directly  in  connection  with  construc- 
tion of  the  plant  or  equipment,  including  payments  to  physi- 
cians and  surgeons,  nursing  and  hospital  attendance,  medical 
and  surgical  supplies,  transportation  for  conveying  injured 
persons  and  attendants,  funeral  expenses  and  all  like  costs  in- 
cident thereto. 


206 — General  Construction  Expenses. 

Charge  to  this  account  the  salaries  and  expense  of  executive 
and  general  officers  of  the  plant  under  construction,  clerks  in 
general  offices  engaged  on  construction  accounts  or  work,  rent 
and  repair  of  offices  when  rented  for  construction  purposes 
with  the  office  expenses,  insurance  during  construction ;  also 
all  construction  and  equipment  items  of  a  special  and  inci- 
dental nature  that  can  not  be  charged  to  any  other  account  in 
this  classification. 


21— OTHER  TANGIBLE  GAS  CAPITAL.— P.  A. 

Charge  to  this  account  the  cost  of  all  tangible  gas  capital  not 
elsewhere  provided  for. 


23 

22— OTHER  INTANGIBLE  GAS  CAPITAL.— P.  A. 

Charge  to  this  account  the  cost  of  all  other  property  coming 
within  the  definition  of  intangible  capital  and  devoted  to  gas 
operations.  All  entries  of  charges  to  this  account  shall  de- 
scribe the  acquired  property  with  sufficient  particularity 
clearly  to  identify  it,  and  shall  show  specifically  the  principal 
from  whom  acquired  and  all  agents  representing  such  prin- 
cipal in  the  transaction ;  also  the  term  of  life  of  such  property, 
estimated  if  not  known,  and  if  estimated,  the  facts  upon  which 
the  estimate  is  based. 

23— TANGIBLE  CAPITAL  IN  OTHER  DEPART- 
MENTS.—P.  A. 

Charge  to  this  account  the  cost  of  all  property  of  the  corpo- 
ration coining  within  the  definition  of  tangible  capital  devoted 
to  other  than  gas  operations. 

DEFINITIONS  OF  FLOATING  CAPITAL  ACCOUNTS. 

Floating  Capital  is  divided  into  two  groups,  of  which  the 
first  is  herein  called  Current  Assets  and  the  second  Materials 
and  Supplies. 

In  the  following  definitions  the  figures  prefixed  to  the  titles 
of  the  accounts  are  no  part  of  the  titles  and  are  inserted  merely 
for  convenience  of  reference. 

251— CASH.— P.  A. 

Charge  to  this  account  all  money  coining  into  the  possession 
of  the  corporation  and  in  which  the  corporation  has  the  bene- 
ficial interest.  This  includes  coin  of  the  United  States,  United 
States  treasury  notes,  gold  and  silver  certificates  and  green- 
backs, and  bank  bills  payable  to  bearer.  Also  charge  to  it  all 
bank  credits,  checks  and  drafts  receivable,  subject  to  satisfac- 
tion or  transfer  upon  demand  (whether  payable  to  bearer  or 
to  order).  Credit  this  account  with  all  cash  disbursements 
of  the  corporation. 


24: 

252— BILLS  RECEIVABLE.— P.  A. 

Charge  to  this  account  the  cost  of  all  bills  receivable  (ex- 
cept as  below  provided)  which  are  the  property  of  the  corpo- 
ration and  upon  which  solvent  concerns  are  liable  or  which 
are  sufficiently  secured  to  be  considered  good.  This  account 
includes  demand  notes,  drafts,  etc.,  issued  by  others  than 
banks,  and  time  notes,  drafts,  etc.,  by  whomever  issued.  This 
account  does  not  include  investments  (for  which  see  below)  ; 
nor  does  it  include  interest  coupons. 

253— ACCOUNTS  RECEIVABLE.— P.  A. 

Charge  to  this  account  all  amounts  owing  to  the  corporation 
upon  open  book  accounts  with  solvent  concerns  and  individ- 
uals (other  than  cash  deposited  in  banks)  ;  also  the  cost  of  all 
accounts  and  claims  upon  which  responsibility  is  acknowledged 
by  solvent  concerns  or  which  are  sufficiently  secured  to  be  con- 
sidered good,  and  of  all  judgments  against  solvent  concerns 
Avhere  the  judgment  is  not  appealable  or  suspended  through 
appeal.     This  account  does  not  include  negotiables. 

254— OTHER  CURRENT  ASSETS.— P.  A. 

Charge  to  this  account  the  cost  of  all  current  assets  of  the 
corporation  which  are  not  includible  under  any  of  the  last 
three  foregoing  accounts.  By  current  assets  are  meant  only 
those  things  which  are  readily  convertible  into  money  and 
which  are  held  with  the  intent  of  being  presently  converted 
into  money  and  not  as  investments. 

255— MATERIALS  AND  SUPPLIES.— P.  A. 

Charge  to  this  account  the  cost  (including  transportation) 
of  all  materials  and  supplies  which  are  not  debited,  on  re- 
ceipt, directly  to  the  construction  or  operating  expense  ac- 
count for  which  they  are  purchased,  regardless  of  whether  the 
same  are  intended  to  be  consumed  in  construction  or  in  opera- 
tion, or  later  to  be  sold. 


Where  discounts  recovered  through  prompt  payment  arc  not 
credited  to  the  particular  bills,  the  cost  at  which  such  ma- 
terials and  supplies  shall  be  charged  shall  be  the  invoice  price 
and  any  discounts  later  recovered  through  prompt  payment 
for  such  bills  and  supplies  shall  be  credited  to  this  account. 

When  any  materials  or  supplies,  the  cost  of  which  has  been 
charged  to  this  account,  are  issued  for  use,  the  cost  of  the  same 
shall  be  credited  to  ''Materials  and  Supplies"  and  debited  to 
the  proper  construction  or  operating  expense  account. 

Inventories  of  materials  and  supplies  shall  be  taken  at  least 
annually,  and  any  shortages  or  overages  xlisclosed  by  such  in- 
ventories shall  be  credited  or  debited  to  this  account  and 
debited  or  credited  to  the  operating  expense  account  No.  — ,  "In- 
ventory Adjustments,"  in  case  they  cannot  be  assigned  to 
specific  accounts. 

L»r,(i— l NVESTMENTS.— P.   A. 

By  Investments,  as  here  used,  are  meant  all  properties  or  se 
curities  acquired  for  use  in  present  operations,  as  a  means  of 
obtaining  or  exercising  control  over  other  corporations,  or  for 
income  to  be  derived  from  them,  or  for  a  rise  in  value,  or  for 
devotion  to  future  operations  at  a  time  when  it  seems  probable 
that  they  cannot  be  so  advantageously  acquired  as  at  the  time 
of  actual  acquisition.  The  cost  of  the  corporation's  title  to 
any  property  or  securities  held  as  an  investment  for  other  than 
the  Sinking  Funds  shall  he  charged  to  this  account. 

257— SINKING  FINDS,  INVESTED.— P.  A. 

To  this  account  should  be  charged  the  cost  of  live  securities 
in  the  hands  of  trustees  for  the  purpose  of  redeeming  outstand- 
ing obligations.  This  should  not  include  any  reacquired  securi- 
ties issued  by  the  respondent. 

258— SINKING  FINDS,  UNINVESTED.— P.  A. 

To  this  account  should  be  charged  the  amount  of  cash  set 
aside  for  investment  for  the  Sinking  Funds;  also  amounts  de- 
posited with  a  trustee  on  account  of  mortgaged  property  sold. 


26 
259— SPECIAL  DEPOSITS.— P.  A. 

By  Special  Deposits,  as  here  used,  are  meant  amounts  <»t' 
money  and  bank  credits  in  the  hands  of  fiscal  or  other  agents 
of  the  corporation  for  the  payment  of  coupons,  dividends  or 
other  .special  purposes. 

Charges  to  this  account  shall  specify  the  purpose  for  which 
the  deposit  is  made.  When  such  purposes  are  satisfied  this 
account  shall  be  credited  with  the  amount  specially  deposited 
to  provide  such  satisfaction. 

260— PEEPAY^I  ENTS.— P.  A. 

When  prepayments  for  taxes,  insurance,  rents  and  the  like 
are  made  in  advance  of  the  actual  accrual  thereof,  the  amount 
of  the  advance  payment  shall  be  charged  to  this  account.  As 
such  taxes,  etc.,  accrue  this  account  shall  be  credited  and  the 
appropriate  expense  or  income  account  be  charged. 

When  prepayments  are  made  for  any  other  thing  than  taxes, 
insurance  and  rents,  etc..  such  prepayments  shall  be  charged 
to  this  account;  and  as  the  purpose  of  prepayment  is  satisfied, 
proportionate  amounts  shall  be  credited  monthly  to  this  ac- 
count and  charged  to  the  appropriate  expense  or  income  ac- 
count. 

NOTE. — By  the  accrual  of  taxes,  insurance,  rents,  etc.,  is  meant 
their  accumulation  when  considered  as  spread  uniformly  over  the 
period  to  which  they  apply.  Thus,  if  the  rent  fixed  by  contract  of  leaso 
for  a  certain  property  is  $600  for  a  calendar  year,  this  accrues  at  the 
rate  of  $50  each  month,  regardless  of  the  actual  times  when  the  rent 
matures;  $50  should  thus  (if  the  rent  has  been  prepaid)  be  credited 
each  month  to  this  account  and  concurrently  charged  to  the  appro 
priate  account  in  the  "Income"  account.  Similarly  in  the  case  of  other 
prepayments. 

261— UNEXTINGUISHED    DISCOUNT  ON   SECURI- 
TIES.—P.   A. 

When  capital  stocks,  funded  debt,  securities  and  other  evi- 
dences of  indebtedness  are  disposed  of  for  a  consideration 
whose  cash  value  is  less  than  the  sum  of  the  par  value  of  the 
securities  or  other  evidences  of  indebtedness  and  of  the  interest 


thereon  accrued  at  the  time  the  transfer  takes  place,  the  ex- 
cess of  such  sum  of  the  par  value  and  accrued  interest  over 
the  cash  value  of  the  consideration  received  shall  be  charged 
to  this  account. 

To  this  account  shall  also  be  charged  all  expense  connected 
with  the  issue  and  sale  of  evidences  of  debt,  such  as  fees  for 
drafting  mortgages  and  trust  deeds,  fees  and  taxes  for  record- 
ing mortgages  and  trust  deeds,  cost  of  engraving  and  printing- 
bonds,  certificates  of  indebtedness  and  other  commercial  paper 
having  a  life  of  more  than  one  year,  fees  paid  trustees  provided 
for  in  mortgages  and  trust  deeds,  fees  and  commissions  paid 
underwriters  and  brokers  for  marketing  such  evidences  of  debt 
and  other  like  expense.  At  or  before  the  close  of  each  fiscal 
period  thereafter,  a  proportion  of  such  discount  and  expense 
based  upon  the  life  of  the  security  to  maturity  shall  be  cred- 
ited to  this  account  and  charged  to  account  No.  ,  "Extin- 
guishment of  Discount  on  Securities."  Such  discount  and  ex- 
pense may,  it'  desired,  be  extinguished  more  rapidly  through 
charges  of  all  or  any  part  of  it,  either  at  the  time  of  issue  or 
later,  to  the  year's  ''Corporate  Surplus  or  Deficit"  account. 

•nvi— scspexse.— 1».  a. 

To  this  account  shall  be  made  all  debits  not  elsewhere  dis- 
tributed or  provided  for,  or  the  final  disposition  of  which  is  un- 
certain. This  will  include  all  such  matters  as  expense  of  work 
not  yet  completed  and  of  preliminary  surveys,  plans,  investiga- 
tions, etc..  made  for  determining  the  feasibility  of  projects 
under  contemplation. 

Should  any  such  project  later  be  carried  to  completion,  such 
amounts  shall  be  credited  to  this  account  and  charged  to  the 
proper  capital  or  expense  account.  Should  it  be  abandoned, 
such  amounts  shall  be  charged  to  "Miscellaneous  Non-Oper- 
ating Expense"  account. 

263— RE- ACQUIRED  SECURITIES.— 1\  A. 

When  securities,  whether  funded  debt  or  stocks,  have  been 
actually  issued  to  bona  fide  holders  for  value  (or  after  such 
issue  by   another  corporation   have  been   assumed  by   the  ac- 


28 


counting'  corporation),  and  after  such  issue  (or  assumption) 
have  been  acquired  by  the  corporation  under  circumstances 
which  requires  that  they  should  not  be  treated  as  paid  or  re- 
tired, they  shall  be  charged  at  their  cost  to  this  account. 

DEBT  DEFINED. 

The  word  debt,  as  here  used,  covers  all  absolute  obligations 
to  pay  money  at  a  definite  time  or  times,  or  at  a  time  or  times 
which  are  capable  of  being  made  definite  by  demand,  or  other 
act  of  the  creditor.  It  does  not  cover  contingent  obligations, 
such  as  obligations  to  pay  rent  for  future  enjoyment  of  the 
term,  liabilities  of  indorsers  upon  paper  not  yet  defaulted,  etc. 

Debt  is  divided  into  Funded  Debt  and  Unfunded  Debt. 

271— FUNDED  DEBT.— P.  A. 

Funded  Debt  comprises  all  debt  which  by  the  terms  of  its 
creation  does  not  mature  until  more  than  one  year  after  date 
of  creation.     Funded  Debt  is  classified  as: 

(a)   Real  Estate  Mortgage  Bonds. 

Those  secured  by  a  pledge  of  real  estate  through  mortgage 
or  trust  deed,  or  equivalent  instrument  or  act.  Such  mort- 
gage may  also  include  equipment,  securities  and  other  chattels. 

(5)      Collateral  Trust  Bonds. 

Those  secured  by  a  pledge  of  Securities  or  other  commercial 
paper  through  trust  deed  or  equivalent  instrument  or  act,  but 
not  covering  real  estate  or  equipment. 

(c)  Equipment  Trust  Obligations. 

Those  secured  by  a  lien  upon  equipment,  such  lien  being 
created  in  connection  with  lite  acquisition  of  the  equipment. 

(d)  Plain    Bonds. 

Those  not  secured  by  any  Special  mortgage  or  other  lien, 
but  supported  only  by  the  general  credit  of  the  issuer. 


29 


(e)  Debentures. 


Unsecured  certificates  of  indebtedness. 

Debentures  with  mortgage  rights  are  those  entitled,  in  ac- 
cordance with  the  terms  of  the  contract  under  which  they  are 
issued,  to  participate  in  the  benefits  of  any  subsequently 
created  mortgages.  If  debentures  run  in  perpetuity,  subject 
1o  an  annual  interest  charge,  they  are  called  debenture  stock. 

(f)  Income  Bonds. 

Those  upon  which  the  obligation  to  pay  interest  is  contingent 
upon  the  income  of  the  corporation  not  required  for  the  dis- 
charge of  superior  obligations. 

(g)  Miscellaneous. 

Including  real  estate  mortgages,  pledging  specified  real  es- 
tate to  secure  payment  of  a  debt  not  evidenced  by  a  note,  bond 
or  other  negotiable  paper;  and  chattel  mortgages,  pledging 
specified  chattels  to  secure  the  payment  of  a  debt  not  evidenced 
by  a  note,  bond  or  other  negotiable  paper.  Also  promissory 
notes,  running  for  more  than  one  year  from  the  date  thereof, 
not  secured  by  mortgage  or  other  lien. 


UNFUNDED  DEBT. 

The  accounts  for  unfunded  debt  are  defined  as  follows : 

272— TAXES  ACCRUED.— P.  A. 

Credit  to  this  account  at  close  of  each  month  the  taxes  ac- 
crued during  the  month,  and  make  corresponding  charges  to 
the  "Taxes"  account.  Credits  to  the  account  "Taxes  Accrued'' 
will  necessarily  be  based  upon  estimate  until  the  amount  of 
tax  levied  for  the  tax  period  is  known ;  such  estimates  shall  be 
based  upon  the  best  data  available  and  as  soon  as  the  amount 
of  tax  for  the  period  is  known  the  account  shall  be  adjusted 
to  conform.  When  any  tax  is  paid  it  shall  be  charged  to  this 
account  and  credited  to  "Cash"  or  other  suitable  account. 


30 

273— INTEREST  ACCRUED  ON  FUNDED  DEBT.— P.  A. 

Credit  to  this  account,  as  it  becomes  payable  (or  monthly 
if  desired)  the  interest  accrued  on  the  funded  debt  of  the  cor- 
poration and  charge  same  to  the  account  No.  — ,  "Interest 
on  Funded  Debt."  When  such  interest  is  paid  it  shall  be 
charged  to  this  account  and  credited  to  "('ash"  or  other  suit 
able  account. 

274— INTEREST  ACCRUED  ON  UNFUNDED  DEBT.— P.  A. 

Credit  to  this  account,  at  the  close  of  the  year,  all  accrued 
interest  on  the  unfunded  debt  of  the  corporation  and  charge 
same  to  the  account  No.  — ,  "Interest  on  Unfunded  Debt.'' 
This  does  not  include  any  interest  on  judgments,  nor  that  on 
receiver's  certificates.  The  interest  accruing  on  any  judgments 
against  the  corporation  or  upon  any  receiver's  certificate  shall 
be  credited  to  the  account  to  which  such  judgment  or  receiver's 
certificate  stands  credited  and  charged  to  the  account  No.  — , 
"Interest  on  Unfunded  Debt." 

275— JUDGMENTS   UNPAID.— P.  A. 

"When  any  judgment  of  indebtedness  is  rendered  by  a  Court 
of  competent  jurisdiction  against  the  corporation,  or  any  fine 
or  penalty  requiring  the  payment  of  money  is  assessed  by  such 
a  court  against  the  corporation,  and  no  appeal  accompanied 
by  stay  of  execution  has  been  taken  therefrom  within  the  time 
allowed  by  law  for  such  appeal,  the  amount  of  such  judgment 
shall  be  credited  to  this  account,  and  the  entry  shall  designate 
the  action  or  suit  as  a  consequence  of  which  such  judgment  is 
pronounced  or  such  fine  or  penalty  assessed.  The  designation 
ojf  the  action  or  suit  shall  show  the  court,  the  term  thereof, 
the  parties  and  the  character  of  the  action  or  suit.  Interest 
accruing  upon  any  such  judgment  shall  be  credited  to  this 
account  and  charged  to  the  account  No.  4G2,  "Interest  on  Un- 
funded Debt." 


31 

276— RECEIVER'S  CERTIFICATE. 

When  any  receiver  acting  under  the  orders  of  a  competent 
Court  is  in  possession  of  the  property  of  the  corporation  and 
under  the  orders  of  such  court  issues  certificates  of  indebted- 
ness chargeable  upon  such  property,  the  par  value  of  such  cer- 
tificates shall  be  credited  to  this  account.  Interest  accruing 
upon  such  certificates  shall  also  be  credited  monthly  or  quar- 
terly to  this  account  and  charged  to  the  account  No.  — ,  "In- 
terest on  Unfunded  Debt." 

277— BILLS  PAYABLE. 

When  any  note,  draft  or  other  bill  payable  which  matures 
not  later  than  one  year  after  date  of  issue,  or  of  demand,  or 
assumption  by  the  corporation  of  primary  liability  thereon,  is 
issued  or  assumed,  the  par  value  thereof  .shall  be  credited  to 
this  account  and  when  it  is  paid  it  shall  be  charged  to  this  ac- 
count and  credited  to  "Cash"  or  other  suitable  account. 

278— CONSUMER'S  I >EP< >SITS— GAS. 

Credit  to  this  account,  as  such  deposits  are  made,  all  cash 
deposited  with  the  corporation  as  security  for  the  payment  of 
gas  bills.  Deposits  refunded  shall  be  charged  to  this  account 
and  credited  to  "Cash."  Deposits  applicable  to  uncollectible 
or  worthless  gas  bills  shall,  at  the  close  of  the  fiscal  year  (or 
earlier,  at  the  option  of  the  accounting  corporation)  be 
credited  to  the  account  of  the  consumer  involved  and  debited 
to  this  account. 

279— ACCOUNTS  PAYABLE. 

Credit  to  this  account  when  incurred  all  liabilities  of  the 
corporation  upon  open  accounts,  except  those  provided  for  in 
the  foregoing  account,  "Consumer's  Deposits."  This  shall  in- 
clude at  the  close  of  the  fiscal  year  all  unpaid  bills  for  appara- 
tus, materials  and  supplies,  not  previously  credited,  ami  also 
all  salaries  and  wages  due  and  unpaid. 


32 

280— DIVIDENDS  PAYABLE. 

When  any  dividend  is  declared  it  shall  be  credited  to  this 
account  and  here  remain  until  it  is  paid,  when  it  shall  be 
charged  to  this  account  and  credited  to  "Cash"  or  other  suit' 
able  account. 

281— OTHEB   UNFUNDED  DEBT. 

Credit  to  Ihis  account  all  unfunded  debt  upon  which  the 
corporation  is  liable  and  which  is  nut  elsewhere  provided  for. 

RESEBYES. 

Beserves  shall  be  classirted  as  Contractual  and  Optional. 
Contractual  Reserves  are  reserves  necessitated  by  contracts  of 
the  corporation  as  e.  g.  reserves  to  cover  sinking  funds  pro- 
vided for  in  mortgages.  Optional  Reserves  are  such  tem- 
porary reserves  as  are  created  solely  within  the  discretion  of 
the  corporation. 

2S2— SINKING  FUND  RESERVES.— P.  A. 

Credit  to  this  account  all  appropriations  and  accumulations 
made  in  accordance  with  the  contract  provisions  provided  for 
in  mortgages,  etc.,  or  which  shall  be  required  by  action  of  the 
corporation. 

283— BESERVE  FOB  ACCRUED  DEPKECIATION.— P.  A. 

At  the  close  of  each  year,  after  July  1.  1911,  the  amounts 
charged  to  the  various  repair  (or  Maintenance)  accounts  dur- 
ing the  year  shall  be  compared  with  the  amount  estimated  to 
be  necessary  to  cover  such  wear  and  tear  and  obsolescence  ami 
inadequacy  as  have  accrued  during  the  year  in  the  tangible 
capital  of  the  corporation,  such  portion  of  tin1  life  of  the  intan- 
gible fixed  capital  as  has  expired  or  been  consumed  during  the 
year,  and  the  amount  estimated  to  be  necessary  to  provide  a 
reserve  to  cover  the  cost  of  property  destroyed  by  exlraordi- 
narv    casualties.      If    the   estimated    deterioration    exceeds    the 


total   repairs,   the  accounl    "Depreciation  of  Plant"  shall   be 

debited  and  the  reserve  account  No. ,  "Reserve  for  Accrued 

Depreciation,"  credited  with  an  amount  equal  to  the  excess;  if 
the  sum  of  the  repairs  exceeds  the  estimated  deterioration,  the 
account  "Reserve  for  Accrued  Depreciation"  shall  be  debited 
and  "Depreciation* of  Plant"  credited  with  an  amount  equal  to 
the  excess.  The  net  amount  charged  (or  credited!  to  this  ac- 
count for  any  year,  and  concurrently  credited  (or  charged)  to 
the  reserve  account  "Reserve  for  Accrued  Depreciation"  must 
be  sufficient  to  provide  in  that  account  in  respect  of  the  sev- 
eral items  of  plant,  by  the  time  such  items  go  out  of  service,  a 
reserve  equal  to  the  original  cost  thereof,  less  salvage. 


284— OPTIONAL  RESERVES.— P.  A. 

When  any  admitted  liability  arises  because  of  loss  or  dam- 
age to  the  property  of  others,  or  of  injuries  to  employes  or 
other  persons,  the  amount  of  the  liability  may  (if  not  pre- 
viously provided  for  by  insurance  or  self-insurance)  be  charged 
to  the  appropriate  expense  or  other  accounts  and  credited  to 
this  account,  against  which  (in  such  case)  the  actual  cost  of 
satisfaction  of  the  liability  shall  be  charged  when  the  matter 
is  determined.  If  the  extent  of  the  liability  can  not  be  ascer- 
tained promptly  after  the  liability  arises,  it  may  be  estimated 
as  accurately  as  practicable  for  the  purpose  of  determining  the 
immediate  charge  to  the  expense  or  other  appropriate  account, 
in  which  case  the  matter  shall  be  adjusted  when  the  extent  of 
the  liability  is  definitely  ascertained.  If  the  loss  is  of  such 
character  that  it  is  in  whole  or  in  part  indemnifiable  under  any 
contract  of  insurance  carried  by  the  corporation,  the  indemni- 
fiable portion  of  the  loss  shall  be  charged  to  the  insurer  and 
credited  to  "Optional  Reserves." 

When  any  amount  is  set  aside  for  any  special  reserve  not 
provided  for  heretofore,  a  sub-account  shall  be  made  for  each 
particular  reserve  and  its  title  shall  designate  the  purpose  of 
such  reserve,  and  the  first  entry  therein  shall  express  in  full 
such  purpose. 


285— PREMIUMS  ON  CAPITAL   STOCK.— P.  A. 

When  any  capital  stocks  are  disposed  of  for  a  consideration 
whose  cash  value  is  greater  than  the  sum  of  the  par  value  of 
such  stocks,  the  excess  of  the  cash  value  of  such  consideration 
over  the  sum  of  the  par  value  of  the  stocks  shall  be  credited  to 
this  account.  At  the  close  of  each  fiscal  year  a  proportion  of 
such  premium  based  upon  the  life  of  the  stock  shall  be  charged 
to  this  account  and  credited  in  the  "Revenue"  account ;  or  at 
the  option  of  the  corporation  such  premium  may  be  extin- 
guished more  rapidly  through  credits  of  all  or  any  part  thereof, 
either  at  the  time  of  issue  or  later,  to  the  year's  "Corporate 
Surplus  or  Deficit"  account. 

CAPITAL  STOCK. 

By  stocks  of  a  corporation  are  meant  those  securities  which 
represent  permanent  interests  in  the  corporation  or  interests 
which,  if  terminal,  are  so  only  at  the  option  of  the  corporation. 

Stocks  are  classified  as  common  stocks  and  preferred  stocks. 

286— C< )M M( )N  ST< )( 'K—  P.  A. 

Common  stocks  are  those  whose  claims  in  the  distribution 
of  dividends  are  subordinate  to  the  claims  of  all  other  stocks. 

286A— PREFERRED  STOCKS. 

Preferred  stocks  are  those  which  have  the  first  claim  upon 
such  dividends  as  may  be  distributed.  They  may  be  cumu- 
lative or  non-cumulative,  participating  or  non-participating. 

If  cumulative,  the  amount  by  which  the  dividend,  at  any 
dividend  period  fails  to  reach  the  stipulated  rate,  is  carried 
forward  to  continue  as  a  claim  upon  dividends  until  satisfied, 
if  non-cumulative,  such  amount  lapses. 

If  a  preferred  stock  is  participating,  it  is  not  limited  to  the 
Stipulated  rate  in  the  amount  of  dividends  which  it  may  re- 
ceive, but  is  entitled  to  participate,  in  accordance  with  the 
terms  of  the  contract  under  which  it  is  issued,  in  further  divi- 
dends; if  non-participating,  it  is  limited  to  the  stipulated  rate. 


35 


A  separate  account  shall  be  kept  for  each  class  of  stock  is- 
sued, and  no  two  stocks  shall  be  considered  of  the  same  class 
unless  tbey  are  equal  in  tbeir  interest  or  dividend  rights,  their 
voting  rights  and  the  conditions  under  which  they  may  be  re- 
tired. The  characteristics  of  any  class  of  stocks  in  these  re- 
gards shall  be  designated  in  the  title  of  the  account  raised  to 
cover  such  stocks  and  shall  be  clearly  expressed  in  the  first 
entry  in  such  account. 

If  such  issue  is  for  money,  that  fact  shall  be  stated;  and  if 
for  any  other  consideration  than  money,  the  person  to  whom 
issued  shall  be  designated  and  the  consideration  for  which  is- 
sued shall  be  described  with  sufficient  particularity  to  identify 
it.  If  the  fair  cash  value  of  the  consideration  realized  upon 
the  issue  of  any  amount  of  stock  is  greater  than  the  par  value 
of  such  stock,  the  excess  shall  be  credited  to  the  account  No. 
285,  "Premiums  on  Capital  Stock." 

SCHEDULE  B. 

INCOME  AND  INDICANT  ACCOUNTS  COMPARED. 

A  comparison  of  the  balances  in  the  foregoing  accounts 
(Schedule  A.)  at  any  time  will,  if  the  accounts  have  been  prop- 
erly kept,  show  the  then  existing  condition  of  a  corporation's 
affairs  so  far  as  such  condition  can  be  shown  through  accounts. 
The  group  of  accounts  just  defined  is  sometimes  called  the 
Balance  Sheet  or  Indicant  accounts.  Their  balances  indicate 
the  condition  of  the  corporation  at  any  particular  time.  These 
accounts  with  their  subsidiary  accounts  are  all  that  is  neces- 
sary prior  to  the  time  when  the  corporation  becomes  what  may 
be  called  a  "going  concern. " 

When  a  corporation  begins  operations  it  requires  an  addi- 
tional group  of  accounts  in  which  to  classify  in  convenient 
form  the  accounting  history  of  its  operations.  Such  a  group 
of  accounts  brings  together,  or  accumulates,  the  account  of  the 
various  incidents  of  the  corporation's  operations.  This  group 
of  accounts  may  be  called  the  Income  account.  They  are  made 
up  usually  on  a  yearly  basis  and  are  closed  into  one  grand  ac- 
count called  "Corporate  Surplus  or  Deficit"  which  ties  together 
this  group  of  accounts  and  the  preceding  group  (Schedule  A.) 


3G 

INCOME  ACCOUNT. 

Divisions  of  Income  Account. 

The  principal  divisions  of  this  group  of  accounts  are  the 
Revenue  accounts,  the  Revenue  Deduction  accounts,  the  In- 
conic  Deduction  accounts  and  the  Appropriation  accounts. 

REVENUES  DEFINED. 

By  Revenues, 

Are  meant  all  amounts  of  money  which  the  corporation  re- 
ceives or  becomes  lawfully  entitled  to  receive  for  services  ren- 
dered, for  products  sold,  as  gross  profits  on  merchandise  sold, 
or  as  a  return  upon  its  property,  or  interests  in  property. 
Revenues  are  classified  as : 

(301-309)      Operating  Revenues. 

Those  derived  from  the  sale  of  products  and  merchandise, 
from  services  rendered  and  from  returns  on  property  used  by 
the  person  or  corporation  in  its  own  operations. 

(321-325)     2V on-Operating  Revenues. 

Those  derived  as  a  return  upon  property  of  the  corporation 
in  the  bands  of  others,  or  from  its  interests  in  property  in  the 
hands  of  others.  They  may  be  sub-classified  as  Rents,  Interest, 
Dividends  and  Miscellaneous. 

REVENUE  DEDUCTIONS  DEFINED. 

Revenue  Deductions  include: 

Operating  Expenses. 

Those  necessary  l<>  the  production  of  the  commodities  sold 
and  the  services  rendered  and  to  the  collect  ion  of  the  revenues. 


;:: 


Stable  Expenses. 


NOTE.— This  account  can  be  distributed  to  the  appropriate  operating 
accounts  monthly,  or  at  close  of  year,  if  desired. 

Storeroom  Expenses. 

NOTE.— This  account  can  be  distributed  to  the  appropriate  operating- 
accounts  monthly,  or  at  close  of  year,  if  desired. 

INCOME  DEDUCTIONS  DEFINED. 

Income  Deductions  include: 

Taxes. 

Uncollectible  bills. 

Interest  on  Funded  Debt. 

Interest  on  Unfunded  Debt. 

Inventory  Adjustments. 

Miscellaneous  Non-Operating  Expenses. 

APPROPRIATIONS  1 >EFINED. 

Appropriations  include : 

Extinguishment  of  Discount  on  Securities. 

Depreciation  of  Plant. 
Sinking  Fund  payments. 
Optional  Reserve. 
Dividends  Declared. 
Miscellaneous. 

DEFINITIONS  OF  (iAS  REVENUE  ACCOUNTS. 

Credits  to  the  various  revenue  accounts  shall  be  made  upon 
tbe  basis  of  bills  rendered  or  of  gross  prices.  Discounts  for 
prompt  payment,  corrections  of  overcharges,  overcollections 
theretofore  credited  and  afterward  corrected,  authorized  abate- 
ments and  allowances,  and  other  corrections  and  deductions 
shall  be  charged  to  the  revenue  account  to  which  they  relate. 
In  the  following  definitions  of  accounts  the  letters  and  num- 


3S 

bers  prefixed  to  the  titles  are  inserted  solely  for  convenience 
of  reference  and  are  no  part  of  the  titles  or  of  the  definitions. 

301— MUNICIPAL   STREET   LIGHTING.— P.   A. 

Credit  to  this  account  all  revenues  derived  from  lighting- 
streets  for  municipal  corporations  by  means  of  gas.  or  from 
supplying  gas  therefor. 

302— MUNICIPAL  MIXED   LIGHTING  AND 
POWER.— P.  A. 

Credit  to  this  account  all  revenues  derived  from  lighting 
municipal  buildings  by  means  of  gas,  or  from  gas  supplied  for 
such  purposes,  or  for  heat  or  power  in  municipal  buildings 
where  such  gas  is  supplied  at  lighting  rates  and  is  not  sepa- 
rately measured. 

303— MUNICIPAL  POWER.— P.  A. 

Credit  to  this  account  all  revenues  derived  from  municipal 
corporations  for  gas  supplied  at  special  heat  or  power  rates 
to  such  corporations  for  the  production  of  heat  and  power. 

304— COMMERCIAL  LIGHTING.— P.  A. 

Credit  to  this  account  all  revenues  derived  from  all  consum- 
ers except  municipal  corporations  for  gas  measured  through 
ordinary  meters  and  supplied  for  lighting  at  lighting  rates. 

NOTE. — Where  gas  flowing  through  any  ordinary  meter  is  used  by 
any  other  consumer  than  a  municipal  corporation  for  lighting  and  inci- 
dentally for  heating  or  power  purposes,  the  revenues  derived  therefrom 
shall  be  credited  to  this  account. 

Also,  all  revenues  derived  from  the  sale  of  prepaid  gas  delivered 
through  so-called  "prepayment  meters." 

305— COMMERCIAL    POWER.— P.   A. 

Credit  to  this  account  all  revenues  derived  from  all  con- 
sumers except  municipal  corporations  for  gas  supplied  for  heat 
or  power  at  special  heat  or  power  rates. 


306— MISCELLANEOUS  SALES  OF  (IAS.— P.  A. 

Credit  to  this  account  all  revenues  derived  from  gas  sold  or 
supplied  to  other  gas  corporations  to  be  by  them  distributed 
through  their  own  pipes  to  consumers.  If  any  portion  of  such 
gas  is  incidentally  consumed  by  such  corporations  for  their 
own  benefit,  whether  for  light,  heat,  or  power,  it  shall  be  in- 
cluded herein,  if  not  separately  measured,  or  if  included  under 
the  same  contract  with  that  which  is  distributed  by  them  to 
consumers. 

All  revenue  accruing  to  the  corporation  for  distributing  gas 
of  other  companies  through  its  pipes  and  selling  the  same,  and 
for  all  other  services  performed  in  connection  therewith. 

307— SALES  OF  RESIDUALS  AND  BYPRODUCTS.— P.  A. 

Credit  to  this  account  all  revenues  derived  from  the  s;ile  of 
residuals  and  byproducts. 

308— MISCELLANEOUS  CAS  REVENUE.— P.  A. 

Credit  and  charge  to  this  account  as  follows:  Credit  all  re- 
ceipts from  the  sale  of  gas  merchandise  and  from  gas  jobbing. 
Charge  the  cost  of  gas  merchandise  sold,  such  cost  including 
transportation  charges  paid  on  such  goods. 

Also  credit  the  profit  or  commission  accruing  on  all  jobbing 
work  performed  as  agent  under  agency  contracts,  whereunder 
it  undertakes  to  do  jobbing  work  for  another  for  a  stipulated 
profit  or  commission  upon  its  actual  expense  for  labor,  ma- 
terials and  supplies. 

NOTE. — This  should  not  include  receipts  from  the  sale  of  superseded 
equipment  or  of  junk  or  other  scrap  or  salvage. 

Credit  to  this  account  all  revenue  derived  from  the  letting 
of  gas  engines,  heating  appliances,  lamps  and  other  gas  ap- 
paratus and  appliances  (except  prepaid  meters).  When  the 
contract  of  letting  names  only  a  single  consideration  for  both 
the  letting  and  the  maintenance  of  the  appliances  so  let,  the 
entire  revenue  shall  be  included  in  this  account. 


40 

Credit  to  this  account  all  revenues  derived  from  others  than 
municipal  corporations  for  the  supply  of  gas  and  from  other 
gas  operations  not  includible'in  any  of  the  foregoing  accounts. 

NON-OPERATING  REVENUES. 

321— RENT  FROM  LEASE  OF  (IAS  PLANT.— P.  A. 

Credit  to  this  account  all  revenues  accruing  to  the  corpora- 
tion from  its  interest  in  gas  plant  or  equipment  held  by  others 
under  some  form  of  lease  whereby  it  surrenders  possession  of 
such  property. 

322— RENT  FROM  LEASE  OF  REAL  ESTATE 
OR  BUILDINGS..-P.  A. 

Credit  to  this  account  all  revenues  accruing  to  the  corpora- 
lion  from  leased  property  other  than  gas  plant  and  equipment. 

Against  this  revenue  should  be  charged  all  expense  for  the 
upkeep  of  the  property  so  rented. 

323— INTEREST  REVENUES.— P.  A. 

Credit  to  this  account  all  interest  accruing  to  the  corpora- 
tion upon  such  of  its  interest-bearing  investments,  current  as- 
sets and  special  deposits  as  are  liabilities  of  solvent  concerns 
and  individuals. 

324— DIVIDENDS   DECLARED.— P.  A. 

Credit  to  this  account  at  their  cash  value,  as  of  the  date 
when  collectible,  all  dividends  declared  by  solvent  concerns 
upon  stocks  held  by  the  corporation  among  ils  investments. 

325— MISCELLANEOUS    NON-OPERATING    REVENUE.— 

P.  A.     ' 

Credit  to  this  account  all  non-operating  revenues  accruing 

to  the  corporation  and  not  provided  for  in  any  of  the  foregoing 
accounts. 


41 
DEFINITIONS  OF  GAS  EXPENSE  ACCOUNTS. 

In  the  following  definitions  of  accounts  the  numbers  pre 
fixed  to  the  titles  are  inserted  solely  for  convenience  of  refer 
ence  and  are  no  part  of  the  titles  or  of  the  definitions. 

GENERAL  ACCOUNTS. 

I.  PRODUCTION  EXPENSES. 

II.  TRANSMISSION  AND  DISTRIBUTION  EXPENSES. 

III.  MUNICIPAL  STREET  LIGHTING  EXPENSES. 

IV.  COMMERCIAL  EXPENSES. 

V.  NEW  BUSINESS. 

VI.  GENERAL  AND  MISCELLANEOUS  EXPENSES. 

I.— PRODUCTION  EXPENSES. 

401— SUPERINTENDENCE  AND  LABOR.— P.  A. 

Charge  to  this  account  all  salaries  and  wages  of  men  em- 
ployed in  making  gas. 

This  account  may  be  further  classified,  if  desired,  under  the 
following  headings,  which  shall  be  the  titles  of  sub-accounts 
set  up  hereunder: 

(a)   Works  Superintendence. 

Charge  to  this  account  the  cost  of  labor  of  the  engineer  in 
charge  of  works  and  his  assistants,  also  day  and  night  foremen 
and  station  clerks. 

(T>)  Boiler  Rouse  Labor. 

Charge  to  this  account  the  cost  of  labor  employed  in  weigh- 
ing and  handling  coal,  coke,  and  breeze  from  place  of  storage 
to  boilers;  labor  employed  in  operating  boilers  and  engines 
(including  such  labor  as  that  of  shovellers,  weighers,  boiler 
firemen  and  engineers,  and  oilers)  ;  and  labor  employed  in 
pumping  oil  tar  from  generators  through  separators  to  storage 
tanks,  and  from  storage  tanks  to  boilers.  Include  also  such 
labor  as  that  of  pump  house  men. 


42 


(c)   Retort  House  Labor, 


Charge  to  this  account  the  cost  of  labor  employed  in  firing 
benches,  charging  and  re-charging  retorts,  patching  and  scurf- 
ing  retorts,  cleaning  pipes  and  lids,  quenching  and  handling 
coke  used  under  benches,  and  handling  coal  from  place  of  stor- 
age to  retort  house.  This  includes  such  labor  as  that  of  fore- 
men, firemen,  furnacemen,  retort  and  boiler  tenders,  patchers, 
pipemen,  lid  cleaners,  coke  quenchers,  guymen,  riggers,  shovel- 
lers and  wheelers. 

(d)  Generator  Bouse  Labor. 

Charge  to  this  account  the  cost  of  labor  employed  in  weigh- 
ing and  handling  coal  and  coke  from  place  of  storage  to  charg- 
ing floor,  and  in  operating,  firing,  clinkering  and  cleaning  gen- 
erators. This  includes  such  labor  as  that  of  shovellers,  weigh- 
ers, pumpers,  generator  firemen,  and  runners. 

(e)  Miscellaneous  Labor  At  Works. 

Charge  to  this  account  the  cost  of  general  labor  in  and  about 
the  works  not  specifically  engaged  in  the  manufacture  of  gas, 
such  as  that  of  watchmen,  janitors,  and  messengers,  laborers 
employed  in  cleaning  up  yards,  removing  snow,  and  cleaning- 
out  refuse  pile. 

41)1'— BOILER  FUEL.— P.  A. 

Charge  to  this  account  the  cost  (in  storage  pile)  of  fuel  used 
under  boilers.  This  includes  cost  of  fuel  used,  freight,  de- 
murrage charges,  labor  employed  in  discharging  and  trans- 
ferring fuel  from  point  of  shipper's  delivery  to  place  of  stor- 
age, and  cartage  employed  in  discharging  and  transferring  fuel 
from  point  of  delivery  to  place  of  storage. 

403— FUEL  UNDER  RETORTS.— P.  A. 

Charge  to  lliis  account  the  cost  I  in  storage  pile)  of  fuel  used 
under  retorts.  This  includes  cost  of  fuel,  used,  freight,  de- 
murrage charges,  and  labor  and  cartage  employed  in  discharg- 


43 

ing  and  transferring  fuel  from  point  of  shipper's  delivery  to 
storage  pile. 

NOTE. — If  fuel  is  delivered  from  storage  to  retort  house  by  other 
than  retort  house  labor,  cost  of  such  labor  should  be  added  to  cost  of 
fuel. 

404— COAL  CARBONIZED.— P.  A. 

Charge  to  this  account  the  cost  (in  storage  pile)  of  gas  coal 
used  in  retorts.  This  includes  invoice  cost  of  coal  used,  freight, 
demurrage  charges,  and  lahor  and  cartage  employed  in  dis- 
charging and  transferring  coal  from  point  of  shipper's  delivery 
to  storage  pile. 

405— GENERATOR  FUEL.— P.  A. 

Charge  to  this  account  the  cost  (in  storage  pile)  of  fuel  used 
in  generators.  This  includes  invoice  cost  of  fuel  used,  freight, 
demurrage  charges,  and  labor  and  cartage  employed  in  dis- 
charging and  transferring  fuel  from  point  of  shipper's  delivery 
to  storage  pile. 

NOTE. — If  generator  fuel  is  delivered  from  storage  to  generator 
house  by  other  than  generator  house  labor,  cost  of  such  labor  should  be 
added  to  cost  of  generator  fuel. 

40G— COAL  GAS  ENRICHER.— P.  A. 

Charge  to  this  account  the  cost  (in  storage)  of  enricher  ma- 
terials used  in  enriching  coal  gas.  This  includes  cost  of  en- 
richer  used,  freight,  demurrage  charges,  and  labor  and  cartage 
employed  in  transferring  enricher  from  point  of  shipper's  de- 
livery to  storage. 

407— OIL  (WATER  GAS.)— P.  A. 

Charge  to  this  account  the  cost  (in  storage  tanks)  of  gas 
oil  or  naphtha  used  in  making  water  gas.  This  includes  invoice 
cost  of  oil  used,  freight,  demurrage  charges,  and  labor  and 
cartage  employed  in  getting  oil  from  point  of  shipper's  delivery 
to  storage  tanks. 


44 


408— WATER.— P.  A. 

Charge  to  this  account  the  cost  of  water  used  for  gas  pro- 
duction. 

409— PURIFICATION  LABOR.— P.  A. 

Charge  to  this  account  the  cost  of  labor  employed  in  chang- 
ing purifier  boxes,  revivifying  oxide,  and  removing  spent  oxide 
to  refuse  pile.  This  includes  such  labor  as  that  of  foremen 
and  laborers. 

110— PURIFICATION  SUPPLIES.— P.  A. 

Charge  to  this  account  the  cost  of  material  used  in  gas  puri- 
fication. This  includes  the  average  cost  of  oxide  actually  used 
(the  invoice  cost  and  freight,  plus  shavings,  plus  labor  and 
cartage  necessary  to  store  it,  plus  the  cost  of  mixing  it),  and 
the  invoice  cost  of  lime  actually  used. 

411— MISCELLANEOUS  WORKS  EXPENSE. 

Charge  to  this  account  the  cost  of  sundry  supplies  and  ex- 
penses in  connection  with  the  works  not  includible  in  other  ac- 
counts. This  includes  lubricating  oil,  waste  and  packing,  and 
other  small  materials  of  like  nature  used  in  gas  production; 
also  incidental  items,  such  as  telephone,  ice,  brooms,  mops, 
kerosene,  soap,  towels,  and  similar  expenses. 

412— REPAIRS  OF  WORKS  AND  STATION  STRUCTURES. 

Charge  to  this  account  the  cost  of  all  repairs  of  works  and 
station  structures,  including  permanent  piers  and  other  foun- 
dations. Such  structures  include  retort  houses,  generator 
houses,  purifier  houses,  engine  houses,  boiler  houses,  meter 
houses,  coal  sheds,  coke  sheds,  tar  houses  and  wells,  oil  tanks, 
and  other  structures  for  storage  of  fuel  to  be  consumed  or  car- 
bonized in  the  production  of  gas  and  the  operations  auxiliary 
I  hereto;  structures  for  residuals  and  byproducts;  appurtenant 


45 

walks,  fences,  drives,  tramways,  trestles,  etc.,  and  all  fixtures 
permanently  attached  to  such  structures  and  made  a  part 
thereof;  also  all  buildings',  holding-  houses,  and  other  struc- 
tures at  outlying  holder  stations,  except  the  holders  and  their 
appurtenances. 

NOTE. — Repairs  of  short-lived  and  especially  provided  foundations 
and  settings  for  furnaces  and  boilers,  steam  engines,  gas  engines, 
pumps,  generators,  benches,  condensers,  washers,  scrubbers,  purifiers, 
etc.,  shall  not  be  included  herein.  Such  foundations  and  settings  and 
the  apparatus  and  machinery  to  which  they  pertain  are  not  intended  to 
be  included  under  the  term  fixtures  as  above  used.  Nor  shall  repairs 
of  gas  holders  be  included  in  this  account. 


413— REPAIRS  OF  POWER  PLANT.— P.  A. 

Charge  to  this  account  the  cost  of  all  labor  and  material  for 
repairs  to  the  power  plant. 

This  account  may  be  farther  classified,  if  desired,  under  the 
following  headings,  which  shall  be  the  titles  of  sub-accounts 
set  up  hereunder. 


(«)     Repairs  of  Furnaces,  Boilers,  and  Accessories. 

Charge  to  this  account  the  cost  of  repairing  all  furnaces, 
boilers,  and  boiler  apparatus  and  accessories  devoted  to  the 
production  of  steam  for  use  in  producing  gas  and  in  furnishing 
motive  power  in  gas  works  and  stations.  This  includes  boilers 
and  valves  thereto  attached,  appurtenant  furnaces  and  grates, 
and  flues  leading  to  smokestacks  and  chimneys,  and  the 
specially  provided  foundations  and  settings  of  such  boilers  and 
appurtenances.  It  also  includes  mechanical  stokers  and  other 
like  apparatus  for  regulating  the  supply  of  fuel,  etc.,  feed  and 
hot  water  heaters  and  economizers,  injectors,  filters,  feed 
pumps,  blower  engines,  coal  conveyors,  ash  conveyors,  water 
pipes,  steam  traps,  drains  and  separators;  and  pipes  for  con- 
ducting steam  from  the  boiler  to  the  engine,  to  condensers,  or 
to  the  gas  producers,  exhaust  pipes,  etc.  It  does  not  include 
steam  pipes  whose  primary  purpose  is  the  heating  of  buildings. 


46 

(b)  Repairs  of  Steam  Engines. 

Charge  to  this  account  the  cost  of  repairing  all  steam  en- 
gines devoted  to  use  as  prime  movers  in  gas  works.  This  in- 
cludes the  specially  provided  foundations  and  settings  of  such 
engines.  The  engine,  whether  reciprocating  or  rotary  (such  as 
steam  turbines)  shall  be  considered  to  include  the  throttle  or 
inlet  valve  and  the  governor;  also  condensers  and  air  pumps, 
but  not  the  steam  pipe  leading  from  the  boiler,  nor  the  exhaust 
pipe. 

(c)  Repairs  of  Gas  Engines. 

Charge  to  this  account  the  cost  of  repairing  all  gas  engines 
devoted  to  use  as  prime  movers  in  gas  works  and  stations. 
This  includes  the  specially  provided  foundations  and  settings 
of  such  engines.  The  engine  includes  the  inlet  valve,  governor, 
and  ignition  and  starting  apparatus,  but  not  the  pipe  Jeading 
from  the  gas  holder,  nor  the  exhaust  pipe. 

(d)  Repairs  of  Miscellaneous  Power  Plant  Equipment. 

Charge  to  this  account  the  cost  of  repairing  all  miscellaneous 
power  plant  equipment  at  gas  works  which  is  not  includible  in 
any  of  the  foregoing  accounts.  This  includes  such  mechanical 
apparatus  as  belts,  pulleys,  hangers,  countershafts,  and  other 
apparatus  intermediary  between  the  prime  mover  and  the  ap- 
paratus operated,  cranes,  hoists,  etc.,  and  machine  tools  and 
such  other  tools  at  power  plants  as  are  proper  to  be  capital- 
ized, etc. 


'  414— REPAIRS  OF  GAS  APPARATUS. 

Charge  to  this  account  the  cost  of  all  labor  and  material  for 
repairs  to  the  gas  apparatus. 

This  account  may  be  further  classified,  if  desired,  under  the 
following  headings,  which  shall  be  the  titles  of  sub-accounts 
set  up  hereunder : 


47 

(c)     Repairs  of  Benches  and  Retorts. 

Charge  to  this  account  the  cost  of  all  repairs  of  benches,  in- 
cluding the  retorts  and  their  settings,  and  auxiliary  piping,  in- 
cluding ascension  pipes,  and  foul  and  hydraulic  mains. 

(6)     Repairs  of  Water  Gas  Sets  and  Accessories. 

Charge  to  this  account  the  cost  of  repairing  all  water  gas 
generators  and  accessories  devoted  to  the  production  of  gas, 
the  specially  provided  foundations  and  settings  for  such  water 
gas  sets,  and  the  flues  leading  therefrom  to  smokestacks  and 
chimneys.  This  account  includes  not  only  generators,  carbu- 
reters, superheaters,  seals,  and  piping  connected  therewith, 
but  also  blast  apparatus,  oil  and  steam  supplying  apparatus, 
oil  heaters,  etc.  It  does  not  include  pipes  whose  primary  pur- 
pose is  the  warming  of  buildings. 

(c)      Repairs  of  Purification  Apparatus. 

Charge  to  this  account  the  cost  of  all  repairs  of  the  appa- 
ratus for  purifying  gas,  including  condensers,  washers,  scrub- 
bers, purifiers,  tar  extractors,  etc.,  and  their  specially  provided 
foundations  and  settings. 

id)     Repairs  of  Holders. 

Charge  to  this  account  the  cost  of  all  repairs  of  gas  holders 
and  appurtenances  at  works  and  of  those  at  district  stations. 

(e)     Repairs  of  Miscellaneous  Equipment. 

Charge  to  this  account  the  cost  of  repairing  all  accessory 
equipment  and  apparatus  used  in  the  production  and  storage 
of  gas  not  specifically  provided  for  in  the  foregoing  accounts. 
This  account  includes  repairs  of  exhausters,  station  meters, 
governors,  etc.;  apparatus  for  charging  retorts;  conveyors  for 
disposing  of  coke  and  other  products  and  residuals;  tar  and 
ammonia  apparatus,  pumps,  pipes,  tanks,  etc. 


4S 

415— REPAIRS   OF   WORKS   TOOLS. 

Charge  to  this  account  the  cost  of  repairing  such  tools  and 
implements  used  in  the  production  and  storage  of  gas  as  have 
been  capitalized. 

410— GAS  STORAGE. 

Charge  to  this  account  the  cost  of  labor  and  material  (except 
repairs  i  employed  in  storing  and  regulating  the  how  of  gas  to 
distributing  mains  by  holder  pressure.  This  includes  labor  of 
firemen,  engineers,  valve-men,  and  superintendents  when  en- 
gaged on  gas  storage:  and  cost  of  coal,  coke,  water,  and  inci- 
dentals. 

417— PURCHASED   GAS. 

Charge  to  this  account  the  cash  purchase  price  of  gas  bought 
from  other  companies  for  distribution  through  the  system  of 
the  accounting  corporation;  also  the  corporation's  proportion 
of  the  cost  of  production  (including  maintenance,  but  not  in- 
cluding any  pure  rent  or  return  upon  the  value  of  property  em- 
ployed) of  gas  produced  by  another  concern  for  the  use  of  the 
corporation  under  any  joint  arrangement  for  the  sharing  of 
expense  upon  the  basis  of  the  relative  amounts  of  benefit  to  the 
several  participants. 

418— R ESIDUA  L    E  X 1  ■  E  X  S  E . 

Charge  to  this  account  the  labor  and  expense  in  handling 
aminoniacal  Liquor,  Coke  and  Tar.  This  includes  pumping, 
barrels,  bags,  storage  and  other  expenses  incurred  in  the 
preparation  or  delivery  of  residuals  made  for  sale. 

This  account  may  be  sub-divided,  if  desired,  as  follows: 

418  a.     Aminoniacal  Liquor   Expense. 

1  is  h.     Coke  Expense. 

41  s  c.     Tar  Expense. 


49 

II.— TRANSMISSION  AND  DISTRIBUTION  EXPENSES. 

421—  TRANSMISSION   PUMPING.— P.   A. 

Charge  to  this  account  the  cost  of  pumping  gas  through 
mains  to  the  distribution  system,  including  inspection  and 
regulation  of  booster  governors. 

NOTE. — In  gas  operations,  when  gas  is  delivered  to  the  supply  sys- 
tem outside  the  works  at  substantially  works  pressure,  the  pipe  system, 
including  mains,  feeders  and  services  (and  supply  pipes  to  outlying 
holders,  if  any),  shall  all  be  classed  in  the  distribution  system.  When 
the  pressure  is  raised  by  means  of  boosters  and  the  gas  is  delivered  to 
the  pipes  at  higher  than  works  pressure,  and  is  later  reduced  in  press- 
ure and  delivered  to  the  distribution  system  proper,  that  portion  of  the 
pipe  system  used  for  conducting  gas  at  the  raised  pressure  shall  be 
classed  as  the  transmission  system. 

422— DISTRIBUTION  SUPERINTENDENCE.— P.  A, 

Charge  to  this  account  the  cost  of  all  labor  employed  in 
superintending  the  operation  of  the  street  department,  fitting 
and  repair  shops,  including  the  salaries  of  superintendents, 
foremen,  clerks,  timekeepers,  messengers,  watchmen,  and  jani- 
tors employed  in  the  distribution  department. 

423— DISTRIBUTION  SUPPLIES  AND  EXPENSES.— P.  A. 

Charge  to  this  account  the  cost  of  office  maintenance  and 
incidental  expenses  of  the  street  and  shop  departments,  includ- 
ing light,  heat,  telephone,  water,  ice,  etc. 

NOTE.— When  the  distribution  office  is  combined  with  the  works 
office  or  commercial  office  charges  like  rent,  light,  etc.,  should  be  divided 
between  them  in  a  fixed  ratio,  based  upon  the  relative  amounts  of  use. 

424— GAS   METER   AND   INSTALLATION   WORK.— P.   A. 

Charge  to  this  account  the  cost  of  labor  employed  and  mate- 
rial used  in  locking  and  unlocking  meters,  building  inspection, 
pumping  drip,  cleaning  service  or  house  pipe  with  pump;  set- 
ting, removing,  re-setting  and  changing  position  of  meters,  and 
temporary  repairs  of  leaks  in  house  piping. 


50 
125— GRATUITOUS  WORK.— P.  A. 

Charge  to  this  account  the  cost  of  installing  gas  stoves  and 
other  appliances  on  the  premises  of  consumers,  and  of  work 
done  for  consumers  in  maintaining  the  efficiency  of  their  serv- 
ice, including  complaint  work  and  other  work  done  in  houses 
beyond  the  end  of  the  meter  outlet  connection.  This  includes 
the  cost  of  adjusting  or  changing  location  of  house  pipes,  gas 
burners,  fixtures,  stoves  and  appliances,  and  the  cost  of  new 
pillars,  tips,  burners,  or  devices  not  chargeable  to  repair  ac- 
counts ;  it  does  not  include  such  installation  expense  items  as 
are  provided  for  in  the  preceding  account. 

Credit  to  this  account  the  cost  element  of  receipts  for  job- 
bing work  which  the  accounting  corporation  has  performed  as 
agent,  under  agency  contracts. 

NOTE. — If  the  accounting  corporation  desires,  this  account  can  be 
sub-divided  as  follows: 

425 — Gratuitous   Work. 

425a — Complaint  Expense. 

This  account  should  show  the  cost  of  attending  to  complaints  of  con- 
sumers, so  far  as  the  same  may  involve  work  up  to  the  end  of  meter 
(or  governor)  outlet  connection. 

420— REPAIRS  OF  GAS  MAINS.— P.  A. 

Charge  to  this  account  the  cost  of  labor  and  material  em- 
ployed in  repairing  mains.  This  includes  labor  of  foremen,  in- 
spectors, caulkers,  tappers,  pavers,  drillers,  skilled  laborers, 
general  laborers,  and  similar  workers  on  street  department 
payrolls,  while  engaged  in  repairing,  altering,  overhauling, 
changing  position  of  or  removing  street  mains ;  protecting  ex- 
posed or  undermined  mains,  searching  for  and  repairing  leaks 
in  mains,  and  paving  over  any  of  the  above  work;  also  mate- 
rial and  cartage  in  connection  with  the  above  work. 

NOTE. — This  account  must  be  so  kept  as  to  enable  the  corporation 
to  show  separately  in  its  annual  report  to  the  Public  Service  Commis- 
sion the  cost  of  repairing  trunk  lines  and  mains  used  for  transmission 
of  gas,  and  the  cost  of  repairing  those  used  for  distribution. 

In  gas  operations,  when  gas  is  delivered  to  the  supply  system  out- 
side the  works  at  substantially  works  pressure,  the  pipe  system -in- 
cluding mains,   feeders  and   services    (and   supply   pipes,   to   outlying 


51 

holders,  if  any)  shall  all  be  classed  in  the  distribution  system.  When 
the  pressure  is  raised  by  means  of  boosters  and  the  gas  is  delivered  to 
the  pipes  at  higher  than  works  pressure,  and  is  later  reduced  in  pres- 
sure and  delivered  to  the  distribution  system  proper,  that  portion  of 
the  pipe  system  used  for  conducting  gas  at  the  raised  pressure  shall 
be  classed  as  the  transmission  system. 


427— REPAIRS  OF  GAS  SERVICES.— P.  A. 

Charge  to  this  account  the  cost  of  labor  and  material  em- 
ployed in  repairing  services.  This  includes  the  same  classes  of 
labor  as  shown  in  the  account  "Repairs  of  Gas  Mains,"  while 
engaged  in  repairing,  altering,  relaying,  cutting  off,  increasing 
the  size  of  and  changing  the  position  of  services ;  searching  for 
and  repairing  leaks  in  services;  and  paving  over  any  of  the 
above  work ;  also  material  and  cartage  in  connection  with  the 
work  shown  above. 


428— REPAIRS  OF  GAS  METERS.— P.  A. 

Charge  to  this  account  the  cost  of  testing  and  repairing  con- 
sumers' meters. 


429— REPAIRS  OF  DISTRIBUTION  TOOLS.— P.  A. 

Charge  to  this  account  the  cost  of  sharpening  and  repairing 
tools  and  implements  used  in  the  street  department  and  the 
fitting  and  repair  shops  and  charged  to  capital  accounts. 

NOTE. — If  desired,  depreciation,  losses,  etc.,  of  tools  and  implements 
can  be  distributed  to  the  proper  expense  accounts. 

430— REPAIRS  OF  GAS  APPLIANCES.— P.  A. 

Charge  to  this  account  the  cost  of  repairs  of  gas  lamps, 
stoves,  engines,  and  other  appliances  owned  by  the  corporation 
and  rented  to  consumers. 


52 

III.— MUNICIPAL  STREET  LIGHTING  EXPENSES. 

441— STREET  LAMP  OPERATING.— P.  A. 

Charge  to  this  account  the  cost  of  labor  employed  in  clean- 
ing- and  lighting  street  lamps,  and  extinguishing  street  lights ; 
in  inspecting  and  supervising  the  street  lighting  district ;  in  re- 
porting on  re-lights  and  discontinues,  and  watching  the  hours 
of  lighting  and  extinguishing;  and  the  incidental  expenses  of 
street  lamp  operating.  Also  the  cost  of  labor  and  material 
consumed  in  fitting  up  new  lamp  posts,  re-fitting  stand-pipes, 
cleaning  services,  cutting  off  services,  re-caulking  columns,  re- 
moving posts,  re-setting  posts,  re-fitting  columns,  straightening 
posts,  and  all  other  work  of  a  similar  character  necessary  to 
maintain  the  street  lighting  system  to  the  degree  of  efficiency 
required  by  the  city ;  also  re-paving  over  openings  made  neces- 
sary by  such  work. 

iy .—COMMERCIAL  EXPENSES. 

442— COMMERCIAL  EXPENSE.— P.  A. 

Charge  to  this  account  labor  and  expenses  of  regular  and 
prepayment  collectors;  also  the  cost  of  operating  the  com- 
mercial office;  this  includes  labor,  stationery,  printing,  tele- 
phone and  telegraph  service  and  incidental  expenses;  also  the 
cost  of  labor  of  superintendents,  chief  clerks,  stenographers, 
bookkeepers,  general  clerks,  etc.,  employed  in  the  commercial 
department. 

This  account  can  be  sub-divided,  if  desired,  into  the  follow- 
ing sub-accounts : 

442  a.     Commercial  Expense,  Collection. 

442  b.     Commercial  Expense,  Office. 

442  c.     Commercial,  Office  Salaries. 

443— NEW  BUSINESS.— P.  A. 

Charge  to  this  account  the  matters  prescribed  under  the  fol- 
lowing headings,  which  can,  if  desired,  be  the  titles  of  sub-ac- 
counts set  up  hereunder. 


53 


(a)  Advertising. 

This  covers  the  salaries  and  personal  expenses  of  advertising 
manager  and  clerks;  also  the  cost  of  commercial  advertising 
sundries,  including  booklets,  dodgers,  newspaper  advertise- 
ments and  all  related  items. 

(b)  Appliance  Demonstrations. 

This  covers  the  cost  of  labor  and  expenses  incurred  in 
demonstrating  the  use  of  gas  appliances  for  the  purpose  of 
obtaining  new  business. 

(c)  Expense  Soliciting. 

This  covers  the  expenses  incurred  in  soliciting  new  business, 
including  wages,  commissions  and  personal  expenses  of  can- 
vassers, car  fares,  etc.,  and  office  sundries  in  connection  there- 
with. 

I  d)   Gas  Appliances. 

This  covers  the  cost  of  labor  and  material  expended  in  setting 
and  installing  gas  stoves  and  appliances. 

(e)  Gas  Engine  Expense. 

This  covers  the  cost  of  labor  and  material  used  in  connect- 
ing, installing  and  maintaining  gas  engines  whether  owned  or 
not. 

(f)  House  Fitting  Expense. 

This  covers  the  cost  of  labor  and  material  installing  Wels- 
bach  lamps,  gas  fixtures,  house  piping,  etc. 

V.— GENERAL  AND  MISCELLANEOUS  EXPENSES. 

451— SALARIES,  GENERAL.— P.  A. 

Charge  to  this  account  the  salaries  and  traveling  and  in- 
cidental expenses  of  the  chairman  of  the  board,  president,  vice- 


54 

president,  treasurer,  secretary,  comptroller,  general  auditor, 
general  manager,  assistant  general  manager,  chief  engineer, 
general  superintendent,  purchasing  agent,  and  all  other  officers 
whose  jurisdiction  extends  to  the  entire  system  and  whose 
services  can  not  be  satisfactorily  allocated  to  the  several  de- 
partments ;  also  charge  to  this  account  the  salaries  and  travel- 
ing and  incidental  expenses  of  general  office  auditors,  book- 
keepers, cashiers,  paymasters,  stenographers,  clerks,  employed 
in  counting  cash,  and  all  other  clerks  employed  in  the  general 
office. 

NOTE. — Cost  of  labor  of  clerks  in  the  commercial  department  shall 
be  charged  to  the  account  No.  — ,  "Commercial  Administration — Gas." 
(See  page  — .) 

452— EXPENSE,  GENERAL  OFFICE.— P.  A. 

Charge  to  this  account  the  cost  of  office  supplies,  repairs  of 
office  furniture,  and  renewals  of  such  furniture  as  has  not  been 
capitalized;  wages  of  janitors,  porters,  and  messengers;  rent 
of  room  in  office  buildings,  repairs  of  such  rented  rooms,  and 
all  other  miscellaneous  expenses  of  general  offices.  Office  ex- 
penses of  department  officers  must  be  charged  to  the  proper 
departmental  accounts. 

NOTE. — Rents  charged  to  this  account  will  be  required  to  be  reported 
separately. 

453— INSURANCE.— P.  A. 

Charge  to  this  account  premiums  paid  to  insurance  com- 
panies for  fire,  fidelity,  boiler,  casualty,  burglar,  and  all  other 
insurance;  also  amounts  set  aside  as  an  insurance  reserve. 

154— ACCIDENTS  AND  DAMAGES.— P.  A. 

Charge  to  this  account  all  expenses  on  account  of  persons 
killed  or  injured  or  damages  to  property.  This  includes  casu- 
alty insurance  premiums,  damage  done  by  company's  employes 
to  the  property  of  others,  legal  expenses,  medical  expenses,  set- 
tlement of  claims,  salary  and  expenses  of  (Maim  Agent,  wages 


55 

paid  disabled  employes  while  off  duty,  stoves  and  other  appli- 
ances given  to  consumers  in  exchange  for  those  destroyed  by 
explosion  or  other  accident. 

455— RELIEF  DEPARTMENT  AND  PENSIONS.— P.  A. 

Charge  to  this  account  all  salaries  and  expenses  incurred  in 
connection  with  conducting  a  relief  department;  also  contribu- 
tions made  to  such  department;  also  all  pensions  paid  to  re- 
tired employees,  and  expenses  in  connection  therewith. 

450— GENERAL  LAW  EXPENSES.— P.  A. 

Charge  to  this  account  all  law  expenses  except  those  incurred 
in  the  defense  and  settlement  of  damage  claims.  This  includes 
salaries  and  expenses  of  all  counsel,  solicitors,  and  attorneys, 
their  clerks  and  attendants,  and  expenses  of  their  officers;  cost 
of  law  books,  printing  briefs,  legal  forms,  testimony,  reports, 
etc.,  fees  and  retainers  for  services  of  attorneys  not  regular 
employees ;  court  costs  and  payments  of  special,  notarial,  and 
witness  fees  not  provided  for  elsewhere,  expenses  connected 
with  taking  depositions,  and  all  law  and  court  expenses  not 
provided  for  elsewhere. 

457— STABLE   EXPENSES.— P.    A. 

Charge  to  this  account  the  cost  of  feed,  keep  and  shoeing  of 
horses,  wages  of  stablemen,  hostlers,  veterinary  expenses,  and 
all  other  expenses  of  stabling  horses ;  also  the  cost  of  repair- 
ing wagons  and  harness ;  wages  of  chauffeurs,  and  repairs  and 
other  expenses  of  motor  vehicles. 

NOTE. — This  account  can  be  distributed  to  the  appropriate  operating 
accounts  monthly,  or  at  close  of  year,  if  desired. 

458— STORE  ROOM  EXPENSES.— P.  A. 

Charge  to  this  account  all  labor  and  expenses  in  connection 
with  store  rooms,  including  cost  of  sending  materials  and  sup- 


56 

plies  from  general  store  room  to  branch  store  rooms,  and  the 
collection  of  scrap  material. 

NOTE. — This  account  can  be  distributed  to  the  appropriate  operating 
accounts  monthly,  or  at  close  of  year,  if  desired. 


459— TAXES.— P.   A. 

Charge  to  this  account  all  taxes  paid;  this  includes  taxes  on 
real  estate,  personal  property,  capital  stock,  gross  earnings, 
franchises,  etc. 


460— UNCOLLECTIBLE  BILLS.— P.  A. 

When  after  a  reasonably  diligent  effort  to  collect,  any  ac- 
count stated  for  gas  sold  has  proved  impracticable  of  collec- 
tion, it  shall  be  charged  to  this  account  and  credited  to  the  ac- 
count receivable  in  which  theretofore  charged. 

461— INTEREST  ON  FUNDED  DEBT.— P.  A. 

Charge  to  this  account  all  interest  accrued  absolutely  on  the 
outstanding  funded  debt  of  the  corporation.  This  includes 
mortgage  bonds,  income  bonds  (if  interest  on  such  be  pay- 
able), debentures  and  mortgages  and  ground  rents. 

462— INTEREST  ON  UNFUNDED  DEBT.— P.  A. 

Charge  to  this  account  all  interest  paid  or  accrued  on  promis- 
sory notes  or  other  unfunded  debt  of  the  corporation. 

463— INVENT<  >RY  A I ).)  CST.M  ENTS.— P.  A. 

Charge  or  credit  to  this  account  any  shortages  or  overages 
shown  by  the  inventory  of  .Materials  ami  Supplies  which  can 
not  be  distributed  to  the  proper  const  ruction  or  operating  ex- 
pense account. 


464— MISCELLANEOUS  NON-OPERATING 
EXPENSE.— P.  A. 

Charge  to  this  account: 

(a)  All  amounts  accrued  against  the  corporation  for  rent 
of  plant  and  equipment  which  it  holds  under  some  form  of 
lease  from  another  company  or  corporation  and  of  which  it  has 
the  exclusive  possession. 

(6)  Where  any  plant  or  equipment  is  maintained  or  oper- 
ated by  another  corporation  for  the  joint  benefit  of  the  account- 
ing corporation  and  others  under  a  joint  arrangement  for 
sharing  the  expense  (on  the  basis  of  the  relative  amounts  of 
benefit  to  the  several  participants),  if  such  joint  arrangement 
provides  for  including  in  the  charge  again  the  accounting  cor- 
poration any  pure  rent,  profit,  or  return  upon  such  plant  or 
equipment  over  and  above  depreciation  and  othei*  expense  of 
maintenance  and  operation,  such  pure  rent,  or  profit,  or  return 
upon  property  shall  be  charged  to  this  account. 

(c)  All  non-operating  expense  not  provided  for  in  any  of  the 
foregoing  accounts. 

APPROPRIATIONS. 

The  balance  resulting  from  closing  the  foregoing  expense 
accounts  for  any  fiscal  period  into  Revenue  accounts  for  That 
period  gives  the  Net  Corporate  Income  for  that  period.  The 
Net  Corporate  Income  should  be  closed  into  the  "Corporate 
Surplus  or  Deficit"  account.  The  group  of  accounts  which 
show  for  any  fiscal  period  the  changes  in  the  "Corporate  Sur- 
plus or  Deficit"  account  are  designated  the  "Appropriation"' 
accounts,  for  the  reason  that  substantially  all  of  them  are  sub- 
ject only  to  the  discretion  of  the  corporation.  At  the  end  of 
each  fiscal  period  each  of  the  "Appropriation"  accounts  shall  be 
closed  info  the  year's  "Corporate  Surplus  or  Deficit"  account. 

501— EXTINGUISHMENT  OF  DISCOUNT  ON 
SECURITIES,— P.  A. 

Charge  to  this  account  at  the  close  of  each  year  the  propor- 
tion of  the  unextinguished  discount  on  securities  applicable  to 
the  period.     This  proportion  shall  be  such  an  amount  as  will 


58 


completely  wipe  out  the  discount  on  the  debt  during  the  in- 
terval between  issue  and  maturity  of  the  same. 

The  corporation  may,  if  it  so  desire,  earlier  wipe  out  such 
discount  by  charging  all  or  any  portion  thereof  to  the  year's 
••Corporate  Surplus  or  Deficit." 

502— DEPRECIATION  OF  PLANT.— P.  A. 

At  the  close  of  each  year,  after  July  1,  1911,  the  amounts 
charged  to  the  various  repair  (or  Maintenance)  accounts  dur- 
ing the  year  shall  be  compared  with  the  amount  estimated  to 
be  necessary  to  cover  such  wear  and  tear  and  obsolescence  and 
inadequacy  as  have  accrued  daring  the  year  in  the  tangible 
capital  of  the  corporation,  such  portion  of  the  life  of  the  in- 
tangihle  fixed  capital  as  has  expired  or  been  consumed  during 
the  year,  and  the  amount  estimated  to  be  necessary  to  provide 
a  reserve  to  cover  the  cost  of  property  destroyed  by  extraordi- 
nary casualties.  If  the  estimated  deterioration  exceeds  the 
total  repairs,  the  account  "Depreciation  of  Plant"  shall  be 
debited  and  the  reserve  account  No.  ,  ''Reserve  for  Ac- 
crued Depreciation''  credited  with  an  amount  equal  to  Hie 
excess;  if  the  sum  of  the  repairs  exceeds  the  estimated  dete- 
rioration, the  account  "Reserve  for  Accrued  Depreciation" 
shall  he  debited  and  "Depreciation  of  Plant"  credited  with  an 
amount  equal  to  the  excess.  The  net  amount  charged  (or 
credited)  to  this  account  for  any  year,  and  concurrently  cred- 
ited (or  charged)  to  the  reserve  account  "lieserve  for  Accrued 
Depreciation"  must  be  sufficient  to  provide  in  that  account  in 
respect  of  the  several  items  of  plant,  by  the  time  such  items  go 
out  of  service,  a  reserve  equal  to  the  original  cost  thereof,  less 
salvage. 

When  any  capital  is  retired  from  service,  the  amount  (esti- 
mated if  not  known)  originally  charged  to  a  capital  account  in 
respect  thereof  shall  be  credited  to  such  capital  account,  and 
the  original  cost  of  such  capital,  less  salvage,  if  any.  shall  he 
charged  to  the  account  "Reserve  Cor  Accrued  Depreciation." 
Where  capital  is  substantially  continuous  and  cannot  he  satis- 
factorily individualized,  it  shall  he  kept  in  efficient  operating 
condition  through  repair,  and  the  renewals  and  replacements 
of  parts  thereof  shall   he  considered   repairs.     In  the  case  of 


59 

buildings  and  other  separate  structures  capable  of  being  read- 
ily individualized,  charges  to  this  account  must  be  sufficient  to 
provide  in  the  account  "Reserve  for  Accrued  Depreciation"  a 
reserve  equal  to  the  original  cost  thereof,  less  salvage,  by  the 
time  such  structures  go  out  of  service. 

NOTE.— Until  otherwise  ordered,  the  "amount  estimated  to  he  neces- 
sary to  cover  such  wear  and  tear  and  absolescence  and  inadequacy  as 
have  accrued  during"  any  year  shall  be  based  on  a  rule  determined  by 
the  accounting  corporation. 

Such  rule  may  be  derived  from  a  consideration  of  the  said,  corpora- 
tion's history  and  experience  during  the  preceding  five  years.  Depre- 
ciation of  intangible  capital  shall  likewise  be  based  on  rule.  What- 
ever may  be  its  basis,  such  rules  and  a  sworn  statement  of  the  facts 
and  expert  opinions  and  estimates  upon  which  they  are  based  shall  be 
filed  with  the  Public  Service  Commission  on  or  before  January  1,  1912. 
Each  amendment  of  any  such  rule  and  a  sworn  statement  of  the  facts 
and  expert  opinions  and  estimates  upon  which  such  amendment  is 
based  shall  be  filed  with  the  Public  Service  Commission  before  it  is 
used  by  the  accounting  corporation,  and  shall  show  the  date  when  it  is 
to  be  effective.  Such  rules  and  statements  shall  be  filed  upon  sheets 
8%  by  11  inches  in  size,  and  shall  be  entitled  "Rule  of  the  (here  naming 
the  accounting  corporation)  concerning  'Reserve  for  Accrued  Depre- 
ciation.' " 

503— SINKING  FUNDS.— P.  A. 

Charge  to  this  account  and  credit  -Sinking  Fund  Reserves" 
the  amount  of  all  accruals  required  to  be  made  to  Sinking- 
funds  in  accordance  with  the  provisions  of  mortgages  or  other 
contracts  requiring  the  establishment  of  Sinking  funds. 

504— OPTIONAL  RESERVES.— P.  A. 

When  any  special  reserve  is  created  by  the  corporation, 
charge  the  amount  set  aside  to  this  account  and  credit  the 
special  reserve,  giving  the  account  such  title  as  shall  clearly 
designate  the  purpose  for  which  the  reserve  is  created. 

505— DIVIDENDS  DECLARED.— P.  A. 

Immediately  upon  the  declaration  of  a  dividend  this  ac- 
count should  be  charged  the  amount  of  such  dividend  and 
credit  made  to  the  account  "Dividends  Payable." 


GO 
506— M I SC  E  LIjAS  E<  )US. 


BUd  Debts. 


When  any  debt  theretofore  written  off  is  collected,  the 
amount  of  the  collection,  less  expense  involved  in  such  col- 
lection, shall  he  credited  to  the  year's  "Corporate  Surplus  or 
Deficit"  account.  Charge  to  the  year's  "Corporate  Surplus  or 
Deficit"  account  any  debts  written  off  from  the  accounts  of  the 
corporation  which  are  placed  in  the  "Bad  Debt"  class. 

NOTE. — Such  "uncollectible  bills"  as  have  been  provided  for  in  the 
heretofore  denned  "Uncollectible  Bills"  accounts  must  not  be  included 
in  this  account. 

Expenses  Elsewhere  Unprovided  For. 

Charge  to  the  year's  "Corporate  Surplus  or  Deficit"  account 
all  expenses  not  chargeable  as  a  part  of  operating  expenses  or 
of  non-operating  expenses,  such  as  tines  levied  on  the  corpora- 
tion for  violation  of  law,  for  misfeasance,  for  non-feasance,  etc., 
fines  levied  on  directors,  officers  and  other  employes  and  as- 
sumed  by  the  corporation,  donations  to  funds,  to  churches,  and 
other  associations,  and  other  like  expenses  and  outgoes. 

Other  Additions  to  Surplus. 

Credit  to  the  "Corporate  Surplus  or  Deficit"  account  all  ad- 
ditions to  Surplus  because  of  erroneous  accounting  in  prior 
fiscal  periods,  and  all  other  additions  to  Surplus  not  else- 
where provided  for. 

Oilier  Deductions  from  Surplus. 

Charge  to  the  "Corporate  Surplus  or  Deficit''  account  all  de- 
ductions from  Surplus  because  of  erroneous  accounting  in 
prior  fiscal  years,  and  all  other  deductions  from  Surplus  not 
elsewhere  provided  for. 

NOTE. — A  complete  analysis  of  the  "Miscellaneous  Appropriations" 
will  be  required  in  the  annual  reports  of  corporations  to  the  Public. 
Service  Commission. 


